How To Do Business in Pakistan?: Trade & Investment Guide

How to do
business in
PAKISTAN?
Trade & Investment Guide
TRADE DEVELOPMENT AUTHORITY OF PAKISTAN

MINISTRY OF COMMERCE
December, 2020
Disclaimer
This booklet provides basic knowledge to potential investors and exporters. The aim of this guide is
to highlight the striking features of Pakistan’s emerging economy, liberal investment regime, export
potential, newly amended Companies law (2017), revised Corporate tax legislation and
initiatives/incentives introduced by Government of Pakistan for entrepreneurs and exporters.
Information and statistics used are correct as of November 2020 and may be subject to change. For
detailed and updated information regarding doing business in Pakistan, readers are advised to visit
the official site of the concerned authorities.
For any query or feedback regarding this document please contact at:
Ms. Mehrun-Nisa
Research Associate
Trade Development Authority of Pakistan
Mehrun.nisa@tdap.gov.pk
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Table of Contents
Pakistan: In General ............................................................................................................................................. 1
Geography and Connectivity ............................................................................................................................................. 2
Demography ........................................................................................................................................................................... 2
Language ................................................................................................................................................................................. 2
Currency .................................................................................................................................................................................. 3
Religion .................................................................................................................................................................................... 3
Constitution ............................................................................................................................................................................ 3
Government Structure ........................................................................................................................................................ 3
E-Government Initiative ..................................................................................................................................................... 3
Energy Prices ......................................................................................................................................................................... 3
Policy Rate .............................................................................................................................................................................. 4
Labour employed and Wage rate .................................................................................................................................... 4
Expanding Wholesale and Retail market ...................................................................................................................... 4
International Relations ....................................................................................................................................................... 4
Free Trade Agreements ................................................................................................................................................. 5
Major Economic Indicators ............................................................................................................................................... 6
Pakistan’s Investment Climate......................................................................................................................... 7
Foreign Direct Investments’ Statistics ........................................................................................................................... 8
Promoting Agency: Board of Investment...................................................................................................................... 9
Investment Incentives......................................................................................................................................................... 9
1. Non-Discrimination for foreign investors ..................................................................................................... 9
2. No Minimum-Maximum capital requirement............................................................................................... 9
3. Flexible financing requirements ..................................................................................................................... 10
4. Protection for property rights ......................................................................................................................... 10
5. Right to due process of Law ............................................................................................................................. 10
6. Allowed foreign exchange and remittances ................................................................................................ 10
Business Facilitation.......................................................................................................................................................... 11
Investor Friendly Visa Policy .......................................................................................................................................... 12
Corporate Tax Incentives ................................................................................................................................................. 12
Infrastructure Facilities Towards FDI ......................................................................................................................... 13
1. Export Processing Zone ..................................................................................................................................... 13
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2. Special Economic Zones ..................................................................................................................................... 13
Incentives under Finance Bill 2020 .............................................................................................................................. 17
Public Private Partnerships (PPPs) .............................................................................................................................. 18
PPP at federal level ........................................................................................................................................................ 18
Scope and nature of PPP in Pakistan ....................................................................................................................... 18
Modes of PPPs allowed in Pakistan.......................................................................................................................... 19
Pakistan’s Trade Progress & Facilitation .................................................................................................. 20
Pakistan’s Trade Performance ....................................................................................................................................... 21
Export Profile .................................................................................................................................................................. 22
Import Profile .................................................................................................................................................................. 22
Trade Promoting Agency: Trade Development Authority of Pakistan ............................................................. 23
Activities ........................................................................................................................................................................... 23
Recent Publications ....................................................................................................................................................... 23
Export Facilitation .............................................................................................................................................................. 23
A. Export Facilitation Schemes by Federal Board of Revenue (FBR) .............................................................. 23
i. Manufacturing Bonds Scheme ......................................................................................................................... 24
ii. Export Oriented Units(EOU) and SMEs ........................................................................................................ 24
iii. Duty and Tax Remission for Export (DTRE) Scheme ............................................................................... 25
iv. Temporary Importation Scheme .................................................................................................................... 25
v. Export Processing zone rules........................................................................................................................... 25
B. Export Refinancing Schemes by State Bank of Pakistan (SBP) .................................................................... 26
i. Export Refinance Scheme.................................................................................................................................. 26
ii. Islamic Export Refinancing Scheme............................................................................................................... 26
iii. Long Term Financing facility for Plant and Machinery (LTF) ............................................................... 27
iv. Islamic Long Term Financing Facility for Plant and Machinery(ILTFF) ............................................ 27
C. Duty Drawback Schemes by Ministry of Commerce ........................................................................................ 27
i. “SRO. 711(I)/2018” dated June 8th, 2018 for non-textile sector......................................................... 27
ii. Notification No.1(42-B) TID/18-TR-II” for textile sector ....................................................................... 28
D. Import Tariff Rationalization .................................................................................................................................. 28
E. Imported items exempted for Sales tax ........................................................................................................ 28
F. Imported items exempted for Federal Excise duty................................................................................... 28
Doing Business in Pakistan ............................................................................................................................ 29
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Steps to Start Business in Pakistan ............................................................................................................................... 30
Step 1: Register a business.......................................................................................................................................... 30
Step 2: Apply for construction permit..................................................................................................................... 30
Step 3: Apply for electricity connection.................................................................................................................. 31
Step 4: Register a property ......................................................................................................................................... 31
Step 5: Register and pay taxes ................................................................................................................................... 31
Step 6: Customs Clearance .......................................................................................................................................... 31
Pakistan’s Doing Business performance in DB 2020 .............................................................................................. 32
6th EODB Reform Plan for DB 2022 .............................................................................................................................. 33
Pakistan’s Companies Act ............................................................................................................................... 35
Companies Act, 2017 ......................................................................................................................................................... 36
Mode of forming a company ........................................................................................................................................... 36
Incorporation ....................................................................................................................................................................... 36
Documentation .................................................................................................................................................................... 37
Meeting and Procedures................................................................................................................................................... 37
Key Personnel ...................................................................................................................................................................... 38
Compliance ........................................................................................................................................................................... 40
Restrictions and prohibitions ......................................................................................................................................... 41
Related party transactions .............................................................................................................................................. 41
Company accounts ............................................................................................................................................................. 42
Dividend ................................................................................................................................................................................ 42
Power of registrar .............................................................................................................................................................. 42
Amalgamation of wholly owned subsidiaries in holding company ................................................................... 43
Winding up by court .......................................................................................................................................................... 43
Pakistan’s Corporate Tax Regulation ......................................................................................................... 45
Corporate Income Tax....................................................................................................................................................... 46
Capital Gain Tax .................................................................................................................................................................. 47
Withholding Tax.................................................................................................................................................................. 47
Withholding tax paid in relation to exports .......................................................................................................... 48
Pakistan’s Trade and Investment Facilitation Missions in the World ........................................... 49
Important Links .................................................................................................................................................. 71
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List of Tables
Table 1: City hours ahead or behind Pakistan ............................................................................................................. 2

Table 2: Age structure in Pakistan.................................................................................................................................... 2
Table 3: FDI inflows by origin of countries- USD Millions...................................................................................... 8
Table 4: FDI inflows according to sectors- USD Millions ........................................................................................ 8
Table 5 : Highlights of the Investment incentives in Pakistan ............................................................................ 10
Table 6: List of countries having Bilateral investment treaties with Pakistan ............................................ 11
Table 7: Enterprise/activity specific tax incentives ................................................................................................ 12
Table 8: Yearly Trade overview of Pakistan ............................................................................................................... 21
Table 9: Reforms for DB 2022 to be completed in year 2020 ............................................................................. 33
Table 10: Rate applicable for Capital gain ................................................................................................................... 47
Table 11: Withholding Tax rates for resident and non-resident companies ................................................ 47
Table 12: WHT in relation to exports ............................................................................................................................ 48
List of Figures
Figure 1: Pakistan at a Glance............................................................................................................................................. 4

Figure 2: List of Trade Agreements signed by Pakistan .......................................................................................... 5
Figure 3: Economic indicator for the period July-June FY20................................................................................. 6
Figure 4: Priority sectors for FDI ...................................................................................................................................... 9
Figure 5: Trends in Pakistan's Trade Year-wise ....................................................................................................... 21
Figure 6: Steps to start business in Pakistan.............................................................................................................. 30
Figure 7: Corporate tax structure in Pakistan ........................................................................................................... 46
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ACRONYMS
ADB Asian Development Bank

BOI Board of Investment
BOT Build Operate Transfer
DB Doing Business
DTRE Duty and Tax Remission for Exports
ECO Economic Cooperation Organization
EFS Export Finance Scheme
FED Federal Excise Duty
FDI Foreign Direct Investment
FBR Federal Board of Revenue
GDP Gross Domestic Product
IERS Islamic Export Refinance scheme
IMF International Monetary Fund
ILTFF Islamic Long term financing facility
LDA Lahore Development Authority
LESCO Lahore Electric Supply Company
LTFF Long term financing facility
NAPHDA Naya Pakistan Housing and Development Authority
NEPRA National Electric Power Regulatory Authority
MoU Memorandum of understanding
OIC Organization of Islamic Cooperation
PITB Punjab Information Technology Board
PPE Property Plant and Equipment
SAARC South Asian Association for Regional Cooperation
SBCA Sindh Building Control Authority
SECP Securities and Exchange Commission
SMEs Small and Medium Enterprises
SEZ Special Economic Zone
UNCTAD United Nation Conference on Trade and Development
UNO United Nation Organization
WHT Withholding tax
WTO World Trade Organization
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How to do business in Pakistan?
Section 1:
Pakistan: In General
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Geography and Connectivity Dhaka(Bangladesh) +1

Pakistan, with a total area of more than Tokyo (Japan) +4
750,000, square kilometers, is the 33rd largest London(UK) -4
country in the world. Sydney (Australia) +5
Its neighboring countries includes Iran, India, New York (USA) -9
China and Afghanistan. Pakistan is also Ottawa (Canada) -9
blessed with 1,046 km long coastline along the
Arabian sea with three well established sea
Demography
ports: Karachi port (Sindh), Muhammad Bin With a population of 220 million Pakistan is
Qasim Port (Sindh) and Gwadar port the fifth most populated country in the world1
(Balochistan). Pakistan’s geography is and forth most populated country in Asia after
strategically significant given its connectivity China, India and Indonesia. With the current
with different regions including Western population growth rate of 2% per annum,
China, Afghanistan and Central Asian population of Pakistan by 2030 shall be 260
Republicans such as Turkmenistan, Tajikistan, million. Currently, the most populated cities
Kazakhstan and Uzbekistan. Hence, all the are: Karachi (11 million), Lahore (6 million),
above mentioned ports hold strategic Faisalabad (2 million), Rawalpindi (1.7
importance. million) and Multan (1.4 Million).
Pakistan comprise of four provinces (sub- Pakistan has mostly young and working class
administrative units): Balochistan, Khyber population. The median age in Pakistan is 22.8
Pakhtunkhwa, Punjab and Sindh. Major cities years 2 . Demographically, more than 62% 3 of
of Pakistan are: Islamabad, Karachi, Lahore, the population over 10 years of age is literate
Sialkot, Faisalabad, Multan, Quetta, Hyderabad and 36.51% total population4 resides in cities.
and Peshawar.
Pakistan’s geographical coordinates put its Table 2: Age structure in Pakistan
time scale 5 hours ahead of “Greenwich Mean
Time” GMT, table below shows the time Age group % of total
population
difference between Pakistan and major world
cities. <10 years 17%
10-24 years 36.76%
Table 1: City hours ahead or behind 25-50 years 36.91%
Pakistan >50 years 9.25
Source: Author’s estimate based on PBS data
City (Country) Time Diff. Language

Beijing (China) +3 Pakistan’s official languages are Urdu and
Dubai (UAE) +1 English. All the official documents which are to
Delhi(India) +0.3 be submitted with public sector authorities
must either be in Urdu or English. However,
1 UN data United Nations, Department of Economic and Social Affairs, Population Division
2 ibid
3PBS (Percentage distribution of population by age, sex, literacy and level of education
2017-18)
4 ibid
~2~
English is widely used and understood in trade the Prime minister for a term of 5 years while
and business circles all over Pakistan. the President, Head of State, is elected by
electoral college comprising members of the
Currency
lower and the upper houses as well as the
The domestic currency is Pakistani Rupee.
members of assemblies of provinces also for a
Religion term of 5 years.
Pakistan is an Islamic republic. However, The current Prime Minister of Pakistan is Mr.
freedom of worship for all religions is Imran Khan who was elected in August 2018.
protected under the constitution. The incumbent president is Mr. Arif-ur-
Rehman Alvi. The next general election in
Constitution
Pakistan shall take place by the late 2023.
The legal framework of republic of Pakistan is
based on 1973 constitution E-Government Initiative
E-Government Directorate was established in
Government Structure
2020 under Ministry of Information &
Pakistan has been a parliamentary democracy
Technology with a view to deliver better
with dichotomy of power between Executive,
public services to enhance government
Legislature and Judiciary.
efficiency with more digitally, economically
The Legislature comprises two houses: The
and bring the public closer to the government.
National Assembly (the lower house) and the
As in the developing countries, government of
Senate (the Upper house). Members of
Pakistan also has taken initiatives and started
national and the provincial assemblies are
e-Government projects in the whole country to
elected through a direct vote. However, some
provide better e-services in a more convenient
seats are reserved for females, ministries
and cost-effective way to not only the citizens
which are nominated by the parties5. Members
of Pakistan but foreign investors and
of the upper house are elected through an
businessmen and government dignitaries who
indirect voting comprising electoral college of
work in Pakistan. The foremost priority is to
members of national and provincial
increase the transparency and responsibility
assemblies. However, some seats are reserved
within government.
for females and minorities which are
nominated by the parties. 6 Energy Prices
The apex judicial authority of Pakistan is the The price of electricity (March 2020) is 0.059
Supreme Court headed by Chief Justice of U.S. Dollar per kWh for households and 0.160
Pakistan. The High Courts, District Courts and U.S. Dollar for businesses which includes all
the lower courts at sub division level function components of the electricity bill such as the
under administrative authority of supreme cost of power, distribution and taxes. The
court of Pakistan. The courts are independent average price of electricity in the world for the
and have judicial powers. same period is 0.141 U.S. Dollar. 7 However,
The Executive authority of country is Cabinet special rates are applicable to various export
of Pakistan headed by the Prime Minister. oriented and service industries.
Members of both houses of legislature elect
5 www.na.gov.pk
6 www.senate.gov.pk
7 Globalpetrolprices.com
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Policy Rate the country for an expanding retail market

The current policy rate in Pakistan is 7% includes increasing population, majorly young
population (73% under 35 years) and growing
Labour employed and Wage rate
middle class income.
In Pakistan the total labour employed is over
65.5 million 8 . According to the ILO data, International Relations
Pakistan is amongst the few Asian countries Pakistan believes in peaceful coexistence and
where the minimum wage rate earns a meagre cooperation with the world. As an important
amount (US$117 per month). The minimum and active member of various international
wage is less than the minimum wage rate in and regional organizations and agencies
China where the rate is USD 217 per month9 /institutions, i.e., United Nations
Organization(UNO), World Trade
Expanding Wholesale and Retail market
Organization (WTO), South Asia Association of
Retail is a prominent sector in Pakistan after
Regional Cooperation (SAARC), Organization
agriculture and manufacturing. Strengths of
Population
220 million
Area: Currency
796,096 Pak
sq.km Ruppee
Capital city
Islamabad
Location
Fiscal Year:
• South 01 July - 30
Asia June
Figure 1: Pakistan at a Glance

Major Industries Major Crops Major energy resources
•Textile, Cements, Fertilizers, •Wheat, Rice, Sugarcane, Cotton •Petroleum, Thermal, Gas, Coal,
Steel, Sugar, Shipbuilding and and Maize Nuclear
Electric goods
Major Exports Major Imports

•Textile, Garments, Rice, leather •Industrial Equipments,
items, carpets, sports goods, Chemicals, Vehicles, Steel, Iron
Handicrafts, Fish and Fish Ore, Petroleum, Edible oil,
preparations and Fruits Pulses and tea
8 Labour Force Survey 2017-18

9 ILO, Global Wage report 2020-21
~4~
of Islamic Countries(OIC), Economic South Asia. Landlocked countries like

Cooperation Organization (ECO), Shanghai Afghanistan and Central Asian States utilize
Cooperation Organization (SCO) 10 , World Pakistan routes and ports for trading with the
Bank, International Monetary Fund, Asian world. Pakistan has thus signed Transit Trade
Development Bank and others, Pakistan Agreement with Afghanistan, facilitating
always promotes its interests through Afghan imports and exporters through
cooperation, compliance of international law, Pakistani ports, and Quadrilateral Traffic in
treaties and mutual respect and Transit Agreement(QTTA) with China,
understanding. Kyrgyzstan and Kazakhstan, for facilitating
Besides, Pakistan has bilateral arrangement transit traffic and trade11.
treaty: Trade and Investment Framework
Agreement(TIFA), with the United States of Figure 2: List of Trade Agreements signed
America. by Pakistan
Free Trade Agreements
Pakistan is firm believer in blessings of Pak-Sri Lanka Free Trade
Agreement (PSFTA)
globalization and economic integration which
are important for eliminating trade barriers
and creation of enabling environment through
cooperation and competition. Market access is Pak-Malaysia Closer Economic
Partnership Agreement
vital for export development, industrial
growth, job creation and fighting poverty. The
Free Trade Agreements are critical for trade
development especially for the developing Pak-Mauritius Preferential Trade
Agreement
world because they help increase volume of
trade and eliminate unhealthy and trade
restrictive measures. To achieve these
Pak-Indonesia Preferential Trade
objectives, Pakistan has been looking for Free Agreement
Trade Agreements (FTAs) with partner
countries in the world.
Pakistan has successfully concluded FTAs with Pak-Iran Preferential Trade
People’s Republic of China(PRC), Democratic Agreement
Socialist Republic of Sri Lanka (DSRSL) and
Persekutuan Malaysia. Pakistan is negotiating
FTAs with Thailand and Turkey. Pakistan is Pak-USA Trade & Investment
member of another Free Trade Agreement: Framwork (TIFA)
South Asia Free Trade Agreement. In addition
to FTAs, Pakistan has signed Preferential
Trade Agreements (PTAs) with the Islamic South Asian Free Trade Area
Republic of Iran and the Republic of Indonesia.
Pakistan is located at strategic position in
10Became member on 9 June 2017

11Route: Karachi-Rawalpindi-Hassanabdal-Gilgit-Khunjrab (Pak/China Border)-Kashgar -Torugart (China/Kyrgyzstan
Border)-Bishkek-Akjol-Kordai (Kyrgyzstan/ Kazakhstan Border)-Almaty (Kazakhstan) = Length - 3710 Km Approx.
~5~
Major Economic Indicators Figure 3: Economic indicator for the period

Pakistan is a resilient economy, its real GDP, July-June FY20
showing positive growth in recent years
despite significant challenges like the global
recession. With abundant natural resources, Indicators FY19 FY20
huge and mainly young population, growing
industrial, agriculture, and services and
GDP Current
increasing trade the country is on the path of
price 37,972 41,727
stabilization.
(Rs./Billion)
For the fiscal year FY20, the outbreak of
COVID-19 devastated global trade and Consumer
threatened food security among many Price Inflation 6.80 10.74
countries, IMF’s world economic outlook in its (average)
June 2020 update estimated that global
Workers’
economic growth had reduced by 4.9% in
Remittances 21.7 23.1
FY20. In Pakistan the pandemic largely (USD Billion)
hampered the activities of manufacturing,
retail, transport and trade and reduced the Foreign Direct
real GDP growth percentage to 0.4% .12 Investments 1.4 2.6
In a bid to revive the economy, Pakistan came (USD Billion)
up with economic stimulus package and social Current
safety program to avoid major economic and account
-4.8 -1.1
human crisis. Prudent monetary and fiscal Balance (% of
policies and improving current account GDP)
balance supported the economy in the Post
Export (USD
COVID period. In the third quarter of FY20 22.9 21.4
Billion)
Consumer confidence has shown an upward
trajectory in a row which shows that the
pandemic’s impact on the economy and Import (USD
54.7 44.5
consumer is slowly tapering off. Billion)
Source: SBP, PBS
12 Source: International Monetary Fund, SBP (annual report 2019-20)
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Section 2:
Pakistan’s Investment Climate
~7~
Foreign Direct Investments’ Statistics Switzerland 21.2 61.8 7.3

A relatively convivial legal environment for UAE 103.7 (44.2) (21.6)
FDI 13 , abundance of cheap labor, lucrative Italy 51.9 56.4 6.8
investment policies and a strategic Netherlands 69.0 133.2 49.1
geographical position of Pakistan has made Austria 7.6 3.8 0.0
the country a suitable candidate for Japan 117.3 52.4 1.7
international investors in the industrial and Turkey 73.8 24.9 0.9
manufacturing sector. Pakistan seeks greater Others 343.0 1,023.6 182.7
foreign direct investment in order to boost its Total 1,362.4 2,561.2 415.7
economic growth, particularly in the Power,
Source: BOI
financial, information and communications
and industrial sectors.
Table 4: FDI inflows according to sectors-
In Pakistan, FDI has improved from year 2015
USD Millions
to year 2018 and then majorly fell in year 2019
Sector 2018- 2019- Jul-
because of the rupee depreciation. In FY20 net
19 20 Sep
FDI inflows in Pakistan surged 88% to USD 2.6
FY 21
billion from USD 1.4 billion as received in
(p)
FY19. Figure below shows the FDI trends for
last 10 years. Oil & Gas 349.8 311.4 67.2
Financial 286.5 273.8 102.5
Table 3: FDI inflows by origin of countries- Business
USD Millions Textile 76.8 37.7 5.0
Trade 76.3 32.7 2.3
Country 2018- 2019- Jul- Construction 70.2 20.7 9.4
19 20 Sep Power (323.9) 764.3 113.3
FY 21 Chemicals 103.1 20.7 (5.4)
(p) Transport 40.1 (4.9) 0.3
China 130.8 844.1 103.6 Communication (55.7) 622.5 37.5
UK 185.0 117.3 27.9 Others 739.2 482.3 83.6
USA 88.1 97.2 18.9 Total 1,362.4 2,561.2 415.7
Hong Kong 171.0 190.7 38.4
FDI trend for last 10 years (USD Millions)
3000 $2,780
$2,407 $2,561
$2,393
2500 $2,151
2000 $1,635 $1,699
$1,456 $1,362
1500 $1,034
1000
$821
500
0
2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20
Source: BOI
13 FDI: Foreign direct investment involves establishing a direct business interest in a foreign country.
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Figure 4: Priority sectors for FDI
Food Processing Logistics Textile Automobiles IT & ITes
Housing & Oil and Gas Communication Finance

Construction
public safety like arms and ammunitions; high

Promoting Agency: Board of Investment
explosives; radioactive substances; securities,
The specialized investment promotion agency
currency and mint; and consumable alcohol.
of Pakistan is the Board of Investment
(BOI). BOI is responsible for the promotion of 2. No Minimum-Maximum capital
investment, assists companies and investors requirement
who intend to invest in Pakistan, facilitates the There is no minimum requirement for the
implementation and operation of their amount of foreign equity investment in any
projects and enhance Pakistan’s international sector. Investment policy of 2013 has also
competitiveness. BOI work in coordination relaxed the limit of equity caps for most of the
with SBP, SECP, Ministry of Finance to sectors. Foreign investors can have 100%
promote foreign investment in insurance, equity (ownership) except for banking, airline,
banking and financial sectors. agriculture and media sectors.
Official website: https://invest.gov.pk/home  For banking sector, State bank of Pakistan
is the sole supervisory and regulatory
authority.14
Investment Incentives
 For services sector, foreign investors may
1. Non-Discrimination for foreign have 100% equity, after having a no-
investors objection certificate from the concerned
The existing investment policy of Pakistan agency/sector.
offers non-discriminatory regulations for  In education, health and infrastructure
foreign investors. Foreign investors can sectors full ownership is allowed.
establish and own, operate and dispose of  A slab of maximum 60% equity is set for
interest in most type of the businesses in agriculture projects while for corporate
Pakistan. The existing FDI policy is open for all agriculture farming 100% ownership is
segments of the country, except those allowed if the subsidiaries are
restricted for reasons of national security and incorporated into Pakistan.
14The authorization/issuance of a commercial banking license has been vested in State bank of Pakistan (SBP)under
section 27 of the Banking Companies ordinance,1962
~9~
3. Flexible financing requirements contract) and after exhaustion of local

In order to address the financing needs foreign remedies for a period of 6-months. In addition
investors are allowed to acquire loan, for any to these, the expanding network of
business activity, from domestic (subject to international investment and free trade
prevailing rules/ regulations of SECP and SBP agreement also ensures smooth and efficient
and observance to Debt-Equity ratio) as well provisions for dispute settlement.
as foreign private entities. Currency exchange 6. Allowed foreign exchange and
option is available for Pakistani currency into remittances
other foreign currency15. Bringing in of foreign currencies is permitted
4. Protection for property rights without any limit. Travelers leaving Pakistan
Pakistan’s legal and investment climate are allowed to physically carry a maximum of
supports the enforcement of property rights $10,000 in cash. For domestic currency,
and both local and foreign owner interest. travelers can carry maximum of Rs. 3000 for
Foreign companies can lease farmland for up India a maximum of Rs. 500 is permitted.
to 50 years, with renewal options. Foreign Cross-border payments of interest, profits,
Private Investment Promotion and Protection dividends, and royalties are allowed without
Act 1976 guarantees the remittance of profits submitting prior notification, banks are
earned through the sale or revaluation of required to report loan information so SBP can
property. verify remittances against repayment
5. Right to due process of Law schedules.
Investors are allowed to go for international
arbitration in case of disputes arising from an
agreement (if that provision is provided in the
Table 5 : Highlights of the Investment incentives in Pakistan

Policy Parameter Manufacturing Non-Manufacturing Sector
Sector
Agricultural Infrastructure Services
and Social
Govt. Permission Not Required Not Required except specific licenses from
(Except some16) concerned agencies
Remittance of Allowed Allowed
capital, profits,
dividends, etc.
Upper Limit of 100% 60%, 100% 100% 100%
foreign equity for CAF17
allowed
15 Foreign Exchange regulations of SBP and Investment policy 2013

16 (Except for Arms and Ammunitions, High Explosives, Radioactive substances, Security Printing, Currency, alcohol
manufacturing)
17 CAF is the corporate Agriculture farming
~ 10 ~
Customs duty on 5% 0% 5% 5%
import of PME18
Tax relief (IDA19, % 25% 25%
of PME cost)
Royalty & Technical No restriction Allowed as per guidelines - Initial lump-sum up to
Fee $100,000 - Max Rate 5% of net sales - Initial period 5
years
Source: BOI
Business Facilitation20
Government of Pakistan is working with the automated, requirements for obtaining
World Bank to improve Pakistan’s business construction and utility permits are made
climate. Pakistan ranked 108 out of 190 easy, online/electronic tax payments method
countries in the World Bank Doing Business is introduced and cross-border trade is
2020 report’s “Starting a Business” category. facilitated by improving electronic
The procedures for registration have been submissions and processing of trade
simplified. Board of Investment has also documents.21
instituted an online registration procedure for Furthermore, till date Government of Pakistan
foreign companies entering and operating in has signed 53 Bilateral Investment treaties, of
Pakistan. In addition to this, land records are which 32 are in force22.
Table 6: List of countries having Bilateral investment treaties with Pakistan

Austria Korea UAE
Bahrain Lebanon UK
Bosnia Mauritius Uzbekistan
China Romania Portugal
Denmark Singapore Spain
France Sri Lanka Netherlands
Germany Sweden Italy
Iran Switzerland BLEU23
Japan Tajikistan Laos
Kazakhstan Turkey Oman
Syria Kuwait
18 Property, Plant and Equipment

19 Initial Depreciation Allowance
20 Section 5 of the report explains the current and upcoming reforms in business facilitation in Pakistan
21 Starting a business in Pakistan normally involves 5 procedures and takes at least 16.5 days. For more information, see
section: doing business in Pakistan

22 https://investmentpolicy.unctad.org/international-investment-agreements/countries/160/pakistan
23 BLEU (Belgium-Luxembourg Economic Union)
~ 11 ~
managerial personnel are allowed for multiple

Investor Friendly Visa Policy
entry 1-year work visa. The duration can be
The existing visa policy of Pakistan is quite
extended on yearly basis subject to approvals.
comfortable for foreign business persons.
The processing time of work visa is 4 weeks.
Under the visa policy of Pakistan, businessmen
No registration with the police is required for
from countries listed under the category of
the work visas.
“BVL countries” (see: BVL countries
Online application is allowed for both the first
https://visa.nadra.gov.pk/business-visa-list-
time (new visa) and extension of existing valid
bvl/ )
visa.
are allowed for:
1. A 5-year multiple entry visa within 24
hours (for “Non-BVL countries” Corporate Tax Incentives
processing time is 4 weeks) Government of Pakistan has announced
2. A single entry 30 days on arrival visa various tax incentives including tax
In addition to this, foreign technical and exemptions, tax holidays and tax credits
Table 7: Enterprise/activity specific tax incentives

Source: 2nd schedule of Income tax ordinance,2001 (amended up to 30th June 2020)
Type of Enterprise/Activity Tax Exemption/reductions
Employing fresh graduates Tax credit equal to the amount of salary paid
in the year of employment
Electric power generating company Profits and gains are fully exempt
Exporter of Computer software, IT services, Exempt till 30th June 2025, where 80% of
IT enabled services export proceeds are brought into the
Pakistan
Refineries, set btw1 July 2018- 30 June 2023 Exemption for 20 years (contingent)
Low-Cost housing projects 50% exempt (contingent)
Projects under NAPHDA24 and Ehsaas25 90% exempt

Program
Enterprises set up in ‘special Economic Zones’ Fully exempt for 10 years or 5 years
(conditions apply)
Liquefied natural gas terminal operators and Fully exempt for 05 years
owners
Small companies26 Reduced income tax rate of 23%
24 Naya Pakistan Housing and Development Authority

25 Ehsaas is the biggest and boldest programme ever launched in Pakistan to uplift marginalized people. Detail of projects
https://www.pass.gov.pk/home
26 Small companies: registered on and after 1 July 2005, has paid up capital plus undistributed reserves not exceeding Rs. 5
million, has employees not exceeding 250 at any time during the year, has annual turnover not exceeding Rs. 250 million
and is not formed by splitting up or the reconstitution of business already in existence.
~ 12 ~
to promote investment and industrialization 7. Duty-free vehicles allowed under certain

in the country. conditions
Furthermore, over 66 bilateral tax treaties 8. Domestic market available to the extent of
have been signed by Government of Pakistan, 20%. Exceptions may be available
the number is still growing. (see list of full 9. Presumptive tax @ 1%
scope bilateral treaties 10. Only EPZA is authorized to collect
https://fbr.gov.pk/bilateral-full-scope- Presumptive Tax at the time of export of
treaties/152329 ) goods which would be final tax liability
11. Obsolete/old machines can be sold in
domestic market of Pakistan after
Infrastructure Facilities Towards FDI
payment of applicable duties & taxes
1. Export Processing Zone 12. Defective goods/waste can be sold in
Established in 1980, the EPZA is one of the domestic market after payment of
fast-growing projects undertaken by the applicable duties, maximum up-to 3% of
government. Export Processing Zones total value
Authority is a Pakistan Government venture 13. EPZ units allowed to supply goods to
conceived and designed to increase and Custom manufacturing bonds
improve the exports of the country. Its main Relevant Agency
objectives are accelerating the pace of Export Processing Zone Authority:
industrialization in the country and enhancing https://epza.gov.pk/
the volume of exports by creating an enabling
environment for investors to initiate
2. Special Economic Zones
ambitious export-oriented projects in the
The Investment policy Act 2013 necessitate
export processing Zones 27 which would, as a
the provision of setting up of Special Economic
corollary, create job opportunities, bring in
Zones28 throughout the country to meet global
new technology and attract foreign
competitiveness efficiently and effectively.
investment.
The Federal Government and Provincial
Incentives for EPZ includes: Governments may establish special economic
zones by themselves or in collaboration with
1. Developed land on competitive rates for private parties under various modes of
30 years collaboration including public- private
2. Duty-free import of machinery, equipment partnership or exclusively through the private
and materials parties as provided under the special
3. Freedom from national import regulations economic zone act ,2012 (amended 2015).
4. Exchange control regulations of Pakistan Under SEZ act private sector can also establish
not applicable SPZs with the approval of the Government.
5. Repatriation of capital and profits Minimum land requirement for establishing
6. No sales tax on input goods including SEZ is fifty (50) acres.
electricity/gas bills
27 Means an economic zone which is establishes under the EPZA ordinance, 1980 (for economic, industrial and commercial
activities)
28 “Special Economic Zone” or “(SEZ)” means a geographically defined and delimited area which has been approved and
notified by the Board of Approval.
~ 13 ~
Incentives for SEZ includes
•One-Time exemption of all custom duties and taxes on Plant and

machinery ( the scope of Property Plant and Machinery has been
expanded to include IT sector, Storage communication, and
For Developer infrastructurein development in Finance bill 2020) imported into
the SEZ (except items of Chapter 87 of Pakistan Custom Tariff)
•Income Tax Exemption for five years from the date of
development agreement
•One-time custom duties exemption on plant and machinery

(except Chapter 87)
For Zone
Enterprises •Income tax exemption for 10 years for units starting production
by 30-06-2020 and 5 years for the units starting production
thereafter
•Same incentives as provided for developers as per the Finance

Co-developers
bill 2020
•One- Window facilities by BOI

•Dry port facilities
Other facilities •Security arrangments by provincial governments
•All utilitie and infrastructure till zero point of zone
Approved /Notified SEZs

Name of SEZ Location Developer29 Type of Industry
Khairpur SEZ Sindh Public Agro Food Processing, light

Engineering and Manufacturing
Allama Iqbal Punjab Faisalabad Industrial Textile, Engineering, Electrical
Industrial City SEZ Estate Development and Electronics, Chemical,
and Management Paints, Agriculture and Food
Company Processing, Steel and Packaging
Bostan SEZ Balochistan Industries Fruit Processing, Agricultural
Department, Gov. of Machinery, Minerals and Gems,
Balochistan Ceramic Industries, Ice and Cold
Storage, Electrical Appliances,
Motor Bike assembly,
Pharmaceutical and Halal food
industry
Hub SEZ Balochistan Lasbela Industrial Textile, Pharmaceutical, Cement
Estates Development manufacturing, Food &
Authority (LIEDA) Confectionary Industries,
29 Developer means an enterprise which has entered into a development agreement with a SEZ Authority
~ 14 ~
Chemical Industries, Plastic,

Paper Manufacturing, Printing &
Packaging, Ceramics, Marble
Processing, Mineral Grinding
Bin Qasim SEZ Sindh National Industrial Light Engineering, Auto & Allied,
Parks Development & Foundry and Fabrication,
Management Warehousing & Logistics, Mixed
Company (NIP) Used
Korengi Creek Sindh National Industrial Low Density Zone: Light
Industrial Park Parks Development & Engineering, Food Processing,
Management Consumer Food &
Company (NIP) Pharmaceutical Products,
Garments / Value added
Textiles, Packaging & Printing &
Warehousing/Logistics High
Density Zone: Commercial and
Business Centers, Information
Technology, Gems & Jewelry
Quaid-e-Azam Punjab Punjab Industrial Textile and Apparel related
Apparel Park Estates Development industries
& Management
Company (PIEDMC)
Naushehro Feroze Sindh National Industrial Agro Food Processing, Agro
Industrial Park Parks Development & Non-Food Processing, Light
Management Engineering, Mixed Used
Company (NIP)
Hattar Special Khyber Food and beverage, Khyber Pakhtunkhwa Economic
Economic Zone Pakhtunkhwa Agro-processing, Zones Development and
Textile, Crockery, Management Company
Paper printing, (KPEZDMC)
Chemical, Cement,
Engineering
M-3industrial City Punjab Faisalabad Industrial Textiles, Engineering, Electrical
Estates Development & Electronic, Chemical & Paints,
& Management Food Processing,
Company (FIEDMC) Pharmaceuticals, Automobiles,
Packaging and Building Material
Rachna Industrial Punjab National Industrial Auto Parts, Leather Products,
Park Parks Development & Packaging and Food Processing
Management units besides other auxiliary,
Company (NIP) industries, Mixed Used
Bhalwal Industrial Punjab Punjab Industrial Citrus Processing Industry,
Estate Estates Development Frozen Concentrated Juice
~ 15 ~
& Management Industry, Pharmaceuticals, Seed

Company (PIEDMC) & Crops Unit, Packaging
Industry, Storage Industry,
Paper Industry, Flour Mills,
Plastic Products, Footwear,
Textile, Warehouse
Vehari Industrial Punjab Punjab Industrial Handicrafts, Chemical Industry,
Estate Estates Development Ginning Mills, Agro Based
& Management Industry, Shoe Industry,
Company (PIEDMC) Pesticides, Pharmaceuticals,
Packaging Industry, Storage
Industry, Paper Industry, Flour
Mills, Plastic Products, Textile,
Cold Storage, Warehouse
Rahim Yar Khan RYK, Punjab Punjab Industrial Oil Mills, Chemical Industry,
Industrial Estate Estates Development Ginning Mills, MDF Production,
& Management Wood Plastic Composite
Company (PIEDMC) Production, Pesticides,
Polypropylene Woven Bags,
Pharmaceutical, Packaging
Industry, Storage Industry,
Paper Industry, Flour Mills,
Plastic Products, Textile, Cold
Storage, Warehouse
Rashakai SEZ Khyber Khyber Pakhtunkhwa Light Engineering, Automotive,
Nowshera Pakhtunkhwa Economic Zones Construction and Food
Development and Processing
Management
Company (KPEZDMC)
Value Addition City Faisalabad, Faisalabad Industrial Textiles, Engineering, Electrical
Punjab Estates Development & Electronic, Chemical & Paints,
& Management Food Processing,
Company (FIEDMC) Pharmaceuticals, Automobiles,
Packaging and Building Material
Oil Village SEZ Rawalpindi, Frontier Oil Company Storage for Oil Marketing
Punjab Companies
Source: BOI
~ 16 ~
Incentives under Finance Bill 202030

For SEZs
on the value assessed on the Goods
Concessions and Exemptions available
Declaration for import.
to the developers of SEZs may be
Machinery, equipment, materials and
extended to co-developers.
goods imported either for exclusive
Expansion in scope of items exempt
use within the limits of Gwadar Free
from customs duty, that are imported
Zone, or for making exports therefrom,
for setting up of a Special Economic
subject to the conditions that such
Zone (SEZ) by zone developers and for
machinery, equipment, materials and
installation in that zone by Zone
goods, are imported by investors of
Enterprises has been proposed. In the
Gwadar Free Zone, and all the
PCT Code 9917, Para (2), the words
procedures, limitations and
‘plant and machinery’ are proposed to
restrictions as are applicable on such
be replaced with ‘capital goods’.
goods under the Customs Act, 1969
Whereas the definition of ‘capital
(Act IV of 1969) and rules made
goods’ in Part-1 of the Fifth Schedule
thereunder shall, mutatis mutandis,
to the Customs Act, 1969, has been
apply. Provided also that if any of such
expanded to include IT sector, storage
goods is taken out of the Zone for
communication and infrastructure
purpose other than the -export, the tax
development of SEZs by Zone
on the same shall be paid by the
Developer.
importer.
Zero rating of sales tax on supplies of
For Gwadar Free Zone31
locally manufactured plant and
Inclusion of China Overseas Ports
machinery to manufacturers in the
Holding Company and its operating
Gwadar Free Zone.
companies namely Pakistan (Private)
Limited, Gwadar International
For Construction Sector
Terminal Limited, Gwadar Marine
The definition of industrial
Services Limited and Gwadar Free
undertaking has been amended to
Zone Company Limited in the list of the
include construction sector, which will
financing agreement companies.
enable the sector to avail tax benefits
Tax concessions and exemptions to be
available to an industrial undertaking.
extended to Gwadar free zone.
The slab of minimum turnover tax
Zero rating of sales tax on supplies of
under section 113 and alternative
raw materials, components and goods
corporate tax applicable on accounting
for further manufacture of goods in the
profits under section 113c (income tax
Gwadar Free Zone and export thereof,
ordinance,2001) shall not apply to
provided that in case of supply to tariff
turnover, income, profits and gains of
area of Pakistan, tax shall be charged
a builder or developer.
30 https://invest.gov.pk/budget-brief-fy-2020-21#gallery-2
31 Sixth Schedule of Sale Tax Act
~ 17 ~
Holding period for taxation of capital construction projects in the form of

gains on disposal of immovable money or land, either as an individual,
property is being restricted to 4 years. as an association of persons or a
Federal Excise duty on cement has company, subject to certain
been reduced to Rs. 1.75 per kg from conditions.
Rs. 2 per kg First purchaser of building or unit of
Withdrawal of advance tax from steel building shall also be immune from the
melters and composite steel units. provisions of section 111 where
Excluding Engineering services from subject to fulfilment of other
the list of specified services attracting conditions, the payment is routed
withholding tax of 3% in case of a through crossed banking instrument
resident person providing such for both new and existing incomplete
service projects.
An optional “Fixed Tax Regime’ from Income Tax ordinance,2001 amended up to
tax year 2020 and onwards for eligible 30th June, 2020 of Pakistan:
builders and developers on a project https://download1.fbr.gov.pk/Docs/202011
by project basis has been introduced 414113915861I.T.OrdinanceAmendedupto(3
on the income, profits and gains 0-06-2020).pdf
derived from the sale of buildings or
sale of plots, from a new or incomplete
Public Private Partnerships (PPPs)
existing project to be completed by
Currently, Government of Pakistan is fully
30th September, 2022.
committed to enhance the attractiveness of
Dividend income paid to a person by a
the country for the private sector. On the
builder or developer shall be exempt
world bank’s index for quality infrastructure
from income tax and tax withholding
Pakistan is being nominated as the most
obligations under section 150.
improved country, for improving its rank from
Reduced rate of advance tax of 5% has
58th position to 13th rank. The most improved
been introduced for sales of
indicator was for Private Infrastructure
immovable property through auction.
investment.
Any tax payable on income, profits or
gains of project of low-cost housing PPP at federal level
under NAYA Pakistan Housing & In 2016-2017, Public Partnership Authority
Development Authority or EHSAAS Act was drafted to establish a regulatory
program shall be reduced by 90%. framework to execute Public Private
Eligible Developers and Builders shall Partnerships. The act has set up transparent
be exempted from withholding taxes and effective procurement processes and
on purchase of building materials institutional arrangements for PPPs in
under section 153, subject to certain Pakistan
exclusions. Scope and nature of PPP in Pakistan
No questions to be asked under The sectors eligible for PPP mode of
section 111 of the Ordinance from the procurement and development includes:
investors, regarding source of funds,  Transport and logistics; including
making capital investment in new  Mass Urban Public Transport;
~ 18 ~
 Local Government Services; processing plant, a mango pulp factory and an

 Energy Projects; agro-food processing plant (not yet fully
 Tourism Projects; operational). PPPs have also been in operation
 Industrial Projects; under various donor projects and a national
 Irrigation Projects; agribusiness program. Gilgit-Baltistan in year
 The Social Infrastructure. 2020 has inked its first Public-Private
A number of PPPs exist in the country in Partnership deal with AKDN (industrial
various sectors, particularly in the traditional Promotion Services Asia) for new hydropower
PPP area of infrastructure development, project.
energy and telecommunication. More recently Modes of PPPs allowed in Pakistan
the use of PPP approach has been extended to a. Federal PPP ACT
physical infrastructure in social sectors, such No specific provision(s) under the
as education and health facilities. Other Federal PPP Act
examples include the Gwadar deep sea port b. Punjab PPP Act
and various container terminals (Qasim and Build–Transfer; Build–Lease–Transfer;
Karachi) that have been implemented using a Build–Operate-Transfer; Build–Own–Operate;
PPP model. In the railway sector, concessions Build–Own–Operate–Transfer;
exist in freight handling and maintenance as a Build–Transfer–Operate; Contract–Add–
PPP model. In the aviation sector only one PPP Operate; Develop–Operate–Transfer;
exists, i.e. Sialkot Airport Authority. Various Joint Venture; Management Contract;
toll roads in the country currently use the PPP Rehabilitate–Operate–Transfer; Rehabilitate–
model, such as the Islamabad Lahore and the Own–Operate and Service Contract
Lahore-Faisalabad motorways. Moreover, a c. Sindh PPP Act
PPP feasibility study (financed by the Asian Build–Operate– Transfer; Design–Build–
Development Bank [ADB]) for a new ring road Finance–Operate; and Any other variant of
in Rawalpindi combined with commercial and PPP. Additionally, the following modes
residential zones has recently been concluded. identified in Part IV of the Sindh Public
In the agriculture and agribusiness sector, a Procurement Rules, 2010: Service Contract;
limited number of PPPs exist, most of which Management Contract; Lease Contract; Build–
have been informally institutionalized under Own–Operate; Build–Own–Operate, transfer;
Ministry of Food Security and Research and Build–Lease–Transfer; Build–Transfer;
the Ministry of Commerce. Most have been in Rehabilitate–Operate– Transfer; and Any
operation for less than a decade. Some combination or variation of the above modes
examples include a PPP for market or any other arrangement under PPP mode
infrastructure development between the approved by the Sindh Public Procurement
Punjab Agriculture Department and the Regulatory Authority
private partners TolLink. The Small and d. KPK PPP Act
Medium Enterprises Development Authority Build–Operate– Transfer; Build–Own–
(SMEDA) under the Ministry of Industry has Operate– Transfer; Design–Build– Finance–
also been involved in the development and Operate; and Any other variant of PPP.
implementation of various PPPs both in the
food and non-food sectors. In the food sector,
SMEDA has participated in developing a meat
~ 19 ~
Section 3:
Pakistan’s Trade Progress &
Facilitation
~ 20 ~
Pakistan’s Trade Performance trade of Pakistan was US $ 77.6 billion in 2019.

Strategically located between the Middle East, As compared to corresponding last year,
East Asia, Central Asia, and South Asia, imports have shrunk while exports have
Pakistan has a great potential to become slightly increased. However, Pakistan has
regional trade and investment hub with more faced huge trade deficit with a negative trade
connectivity through land, sea, and air routes. balance of US$ 31.8 billion for 2019. In FY20,
Pakistan’s trade with the world has gradually the trade deficit reduces by USD 8.7 billion to
increased from year 2015 to year 2020. Global USD 23.1 billion.
Table 8: Yearly Trade overview of Pakistan
Indicator FY15 FY16 FY 17 FY 18 FY 19 FY 20
Export (B
23.6 20.8 20.4 23.2 22.9 21.4
US$)
Import (B
45.8 44.7 52.9 60.8 54.7 44.5
US$)
Balance (B
-22.1 -23.9 -32.5 -37.6 -31.8 -23.1
US$)
Source: Trade map
Figure 5: Trends in Pakistan's Trade Year-wise
Trends in Pakistan's trade (2015-2020)

70 0
60 -5
-10
50
-15
40
-20
30
-25
20
-30
10 -35
0 -40
2015 2016 2017 2018 2019 2020
Export (B US$) Import (B US$) Balance (B US$)
~ 21 ~
Export Profile Import Profile

Major export products of Pakistan are textile, Major import categories of Pakistan are
Cereals, Leather, Fish, Surgical instruments, mineral fuels, electric machinery and its parts,
Salt, Minerals, plastic etc. At HS 6-digit level, iron and steel, organic chemicals and plastics.
the leading commodities exported from At HS 6-digit level, the leading commodities
Pakistan includes rice and textile-based imported in Pakistan include energy yielding
products. 6 out of 7 leading commodities are products like petroleum oil, light oils, natural
textile based in nature. gas, medium oils, and palm oils. Other
The export policy of Pakistan allows all items imported commodity having imported worth
to be exported from Pakistan except those of more than 1 billion USD are telephones.
listed in Schedule-I of the policy under 22 The import policy of Pakistan allows all items
different categories32. to be imported to Pakistan except those
Conditional permission is allowed for Wild specified in appendix A of import policy 2020.
boars, pet dogs and cats, onions, mangoes, under 73 different categories.33 Items under
kino, rice, poppy seeds, vegetable ghee and the scope of Ministry of National Food Security
cooking oil, cotton, metals, arms and and Research are importable under the
ammunition, materials used in biological restriction of inspection and permits. There
weapons, Unmanned Air vehicle, Nuclear are 354 such product headings in the import
substances, equipment for the production of policy of 2020 (mentioned in Part III). Items
nuclear energy, precious and semi-precious under 38 headings are imported only after
stones and gold jewelry, surgical instruments, fulfilling some procedural requirements (part
fruits in retail packing, Ethanol and products II of Appendix B of import policy 2020). These
from cane molasses and tobacco and tobacco includes petroleum oils, motor spirit, furnace
products. oil, finished lubricants, raw material for
pharma, used tyres, security paper, cigarette
making paper, gold and silver in bulk,
Importing Partners components of agricultural tractors, bullet
proof material, second hand vehicles, solar
photovoltaic cells, slag ash and residues.
United States China UK Afghanistan Germany

17% 8.6% 7.1% 5% 5.6%
Exporting Partners
China UAE Saudi Arabia USA Indonesia

24.8% 12.6% 4.9% 5.2% 4.4%
32 Export Policy 2020 https://drive.google.com/drive/u/1/folders/1tDfDcXMNg4Rt6fRnyRcwALjcs-oehLXG
33 Import Policy 2020 https://drive.google.com/drive/u/1/folders/1tDfDcXMNg4Rt6fRnyRcwALjcs-oehLXG
~ 22 ~
Trade Promoting Agency: Trade  Duty Drawback Manual -Textile Exports

Development Authority of Pakistan based on MOC SRO
The Trade Development Authority of Pakistan https://tdap.gov.pk/wp-
(TDAP), which was established on November content/uploads/2020/12/Duty-
8, 2006, under a Presidential Ordinance, with Drawback-Manual-Textile-Exports-1.pdf
Ministry of Commerce as its administrative
ministry. TDAP is the successor organization  Duty Drawback on Local Taxes and
to the Export Promotion Bureau (EPB) and is Levies-Non-Textile based on MOC SRO.
mandated to have a holistic view of global https://tdap.gov.pk/wp-
trade development rather than only the content/uploads/2020/12/Duty-
‘export promotion’ perspective of its Drawback-on-Local-Taxes-and-Levies-
predecessor. Designated as the premier trade Non-Textile-1.pdf
organization of the country, TDAP is a
dedicated, effective, and an empowered  National Exporters Training Program
professionally managed organization https://tdap.gov.pk/national-exporters-
Activities training-program/
• Participation in International Trade
exhibitions Export Facilitation
• Receives and arranges Trade delegations In order to improve and enhance exports from
• Organizes EXPO Pakistan annually Pakistan, exporters have been given calculated
• Runs Expo Center Karachi facilities/incentives. The objective of these
• Implements Trade policy initiatives facilities/incentives is to make exports zero-
• Undertakes Sector development projects rated, which means that the impact of tax paid
Recent Publications is netted off by subsequently allowing refund
To play its part in the knowledge economy, or input adjustments equivalent to the tax
TDAP is actively initiating research based already paid.
programs, trainings, workshops and webinar The major facilities/incentives available to
to prepare Pakistani exporters to grab exporters at present are:
emerging opportunities across the globe. A. Export Facilitation Schemes by
The recent publications of TDAP in this regard
Federal Board of Revenue (FBR)
are:
Federal Board of revenue has simplified and
 Step-by-Step Guide for Exporters (Export
automated various export facilitation regimes.
Procedures)
The schemes provide wide range of choices to
https://tdap.gov.pk/wp-
content/uploads/2020/12/Step-by-Step-
the commercial exporters as well as to the
Guide-for-New-Exporters-Export- manufacture-cum-exporters who could opt
Procedures.pdf the most suitable scheme as per their business
requirement.
 Export Facilitation Manual based on
FBR’s Facilitation Schemes
https://tdap.gov.pk/wp-
content/uploads/2020/12/Export-
Facilaition-Scheme-Manual-2.pdf
~ 23 ~
i. Manufacturing Bonds Scheme shall be the value excluding value of the

(SRO 450(I)2001 Dated 18.06.200134 duty-free goods imported under these
This scheme is open for all sectors. The rules.
scheme allows manufacture-cum-exporters to The scheme allows 40% sale of manufactured
import duty free input material for goods in the local market. For local sale
subsequent export of value added products. exporters are bound to pay the duty and taxes.
They are required to operate in a licensed Local sale of raw materials is permissible for
custom bonded area. The licensee is required leftover stock in exceptional circumstances
to obtain a certificate called “Analysis and are subject to prior approvals. All
Certificate” from the regulatory authority. processes from filing of export application to
Under the scheme, procurement, manufacture the stage of final export are fully automated.
export and removal of goods is allowed in the
following manner (rule 352) ii. Export Oriented Units(EOU) and SMEs
I. the input goods may be imported by the (SRO 327 (I)/2008 DATED 29.03.2008) 35
licensee without payment of custom duty, This scheme promotes Small and Medium
federal excise duty and sales tax after enterprises. With the duty free inputs, this
declaring on the bill of entry that input scheme also facilitates the exporters for duty
goods are being imported under free import of Property, plant and Equipment
manufacturing bond for manufacture of as well as duty and tax free import of coal,
export goods. diesel, gas, furnace oil, coke or coal and carbon
II. the input goods produced from the local blocks used in the manufacturing process. The
excisable unit may be procured by the schemes allow exporters to supply goods to
licensee without payment of central excise other exporters availing other facilitation
duty. schemes like Manufacturing Bond and DTRE.
III. the sales taxable goods meant for further Under the scheme, procurement, manufacture
processing shall be supplied to the export and removal of goods is allowed in the
licensee of the manufacturing bond following manner:
against a tax invoice after payment of sales I. The input goods may be imported by the
tax and the licensee shall be entitled for licensee without payment of customs duty,
refund of input tax credit in accordance sales tax, federal excise duty and income
with the Sales Tax Refund Rules, 2000. tax after declaring on the goods
IV. the licensee may procure duty paid input declaration that such input goods are
goods manufactured locally, in addition to being imported for export oriented unit
duty-free input goods for production of for manufacture of export goods.
finished goods and if duty drawback and II. Transfers are allowed for goods from the
rebate of federal excise duty is admissible units operating or DTRE Rules or a
on export of such finished goods on the Customs Bond to another Export Oriented
basis of standard duty drawback and Unit without payment of customs duty and
rebate notifications, the f.o.b value for other taxes against an indemnity bond.
claiming such duty drawback and rebate
34 https://download1.fbr.gov.pk/Docs/2019124171277534SRO450(I)2001ManufacturingBond(Uptodate(1)-
converted.pdf
35 https://download1.fbr.gov.pk/Docs/20191241712547231SRO327(I)2008EOU(Uptodate)-converted.pdf
~ 24 ~
III. The licensee may procure customs or garments, textile made ups and foot wears The
federal excise duty-paid input goods facility is also available for components or sub-
manufactured locally for production of components for assembly of machinery,
output goods and the licensee shall be electrical equipment, bicycles, aluminum
entitled to payment of drawback of such ware, steel ware, kitchen utensils, surgical
duties. instruments, toys, decorative materials,
IV. The exemption from customs-duty, sales stationary items etc. meant for export.
tax, federal excise duty and income tax, is
granted for plant, machinery, equipment v. Export Processing zone rules40
and apparatus, including capital goods to All types of machinery, equipment, materials
be used solely within the limits of an to be used solely within the limits of a zone and
Export Oriented Unit. the goods for warehousing purposes can be
Under the scheme, 20% of local sale is allowed imported duty free.
on payment of duty and taxes. Goods from tariff area, required for further
processing in a zone, can be admitted after
iii. Duty and Tax Remission for Export completion of export formalities like Export
(DTRE) Scheme GD and Import GD. Local sale up to 20% has
sub-chapter 7 of Chapter XII of SRO also been allowed.
450(I)/2001 DATRED 806.200136 Vehicles can be imported duty free as per the
This scheme is available for imported inputs, entitlement given in the table below:
locally purchased goods and services Sr. Quantum of Vehicles
including gas, electricity, diesel, furnace oil, no Investment in EPZ allowed
coal and coke of coal. This scheme can be 1 US$ 10.00 million or 03
availed by wide number of businessmen i.e. more up to US$ 25
Sales Tax registered exporters, commercial million
exporters, contracted vendors of foreign 2 more than US$ 25 05
manufacturers and persons engaged in value million but less than
addition, EPZs37, projects entitled to duty-free US$ 50 million
inputs and supplies made by indirect 3 equal to or more than 10
exporter38 direct exporter. US$ 50 million but less
than US$ 75 million
iv. Temporary Importation Scheme 4 equal to or more than 15
SRO492(I)/2009 dated 13.06.200939 US$ 75 million but less
This scheme entails exemptions from all than US$ 100 million
duties on import of accessories used for 5 equal to or more than 20
manufacture of exportable goods. The input US$ 100 million but less
than US$ 125 million
goods include accessories used in ready-made
36 https://download1.fbr.gov.pk/Docs/201912416125613694DTRERules-updatedversion-upto12.09.2019-
converted.pdf
37 Export processing zones
38 Indirect exporter means a manufacturer or supplier of goods or articles which are to be used as input for export
39 https://download1.fbr.gov.pk/Docs/20191241712414209Notification-Standard-492-Updatedupto31stjuly,2019-
converted.pdf
40 https://download1.fbr.gov.pk/Docs/20191241612575168ExportProcessingZonesRules(1)-converted.pdf
~ 25 ~
6 equal to or more than 25 Under Part-II of the Scheme, a revolving

US$ 125 million finance limit is sanctioned to the exporter
equivalent to 50% of his export performance
B. Export Refinancing Schemes by
during the previous year on July -June basis.
State Bank of Pakistan (SBP)
Exporters can avail this financing facility for a
In order to ensure smooth flow of credit to
period of 180 days. Facility once availed needs
exporters State Bank of Pakistan has
to be repaid in totality. Exporters having
introduced various credit schemes. Export
availed Part-II facilities have to export / ship
Finance Scheme, Islamic Export Refinance
eligible goods and realize export proceeds and
Scheme, Scheme for Long Term Financing for
submit the evidence of performance on the
Export oriented Projects.
prescribed statement within two months from
i. Export Refinance Scheme close of each financial year.
This is a short-term financing facility by State
bank of Pakistan, which provides refinancing
ii. Islamic Export Refinancing Scheme
facility for 180 days for direct exporters and
The IERS caters the needs of the exporters
120 days for indirect exporters at the current
who wish to avail finances under Shariah
mark-up rate of 3%. Any exporter (Direct or
compliant modes. Exporters can avail the
Indirect41) can avail the facility through any of
scheme from participating Islamic Banks or
commercial bank, after fulfilling collateral
Islamic Banking branches of Commercial
requirements of the bank for commodities not
banks, if the exporter fulfills the criteria stated
listed in “negative list” (Negative list for
in the scheme for Musharika Pool (no fixed
Export Refinancing Scheme
rate) and can finance their purchases for
https://www.sbp.org.pk/bpd/2003/efs-
maximum period of 180 days for a Direct
negative.pdf).
exporter and 120 days for indirect exporter
The Scheme is available under two parts.
against eligible commodities. Musharika Pool
Part-I of ERS
under the IERS is a pool consisting on
Financing under Part I of the Scheme is a
minimum 10 Blue Chip Companies with
transaction-based facility. The finance is
diversified line of businesses to whom the
granted by the bank to the exporter on the
Islamic Bank have provided financing facilities
basis of a Firm Export Order / Export Letter of
on Shariah compliant modes.
Credit, for a maximum period of 180 days. The
The criteria for selection of blue chip
financing facility can be availed at pre-
companies for the Musharika Pool is as under:
shipment stage for procuring inputs and
-
manufacturing the goods to be exported.
(a) No CIB report or export over dues that are
Financing at Post Shipment stage is also
not realized over a period of more than one
granted against goods already shipped to the
year
importer abroad, for the period up-to
(b) should fulfill at least one of the following
realization of export proceeds or 180 days,
three conditions;
whichever is earlier
 good record on the stock exchange,
Part-II of ERS
41on the basis of Standardized Purchase Order (SPO) or the Inland Letter of Credit (ILC) to be established by the Direct
Exporter against the particular Export Order/Contract/Letter of Credit. IDE will be eligible to avail finance from banks
against ILC or SPO, to the extent of the amount mentioned therein. The period of financing by bank to an Indirect Exporter
shall be determined as per the terms of the relevant ILC/SPO, but subject to a maximum of 120 days.
~ 26 ~
 a credit rating of B+  IT software and services (Hardware &

 an average ROE higher than the rates on equipment for IT & Services sector
EFS exports)
 Marble & Granite (cutting and polishing of
iii. Long Term Financing facility for Plant marble & granites and of handicrafts)
and Machinery (LTF)  Gems and Jewelry
As the name indicates, this is a long term  Engineering Goods
financing scheme. Financing is available for Other sectors
export-oriented projects42 to an extent of Rs. 5 Generators / Captive Power Plants, used in
billion for purchase of imported and locally eligible sectors. Ethanol, Furniture,
manufactured new plant and machinery for a Pharmaceutical, Spinning and Ginning sectors,
maximum period of 10 years (inclusive of Regeneration of textile waste, Glass sector,
grace period). For this scheme, State Bank has Dairy sector and Soda ash
fixed an annual mark-up rate of 5 percent.
Other relief measures to fight the COVID-19
iv. Islamic Long Term Financing Facility by State Bank of Pakistan
for Plant and Machinery(ILTFF) Government of Pakistan has announced a
State bank of Pakistan facilitates the exporters “Temporary Economic Refinance Facility” to
for long term financing based on Shariah laws. stimulate investments in post COVID period.
The scheme provides 10 years of currency Under the scheme the banks will facilitate the
finance facility for imported as well as locally investor for investment in new industrial units
manufactured Plant and machinery by export by financing purchase of new imported or
oriented projects. locally manufactured plant and machinery at
Sectors eligible ILTFF scheme are: the maximum rate of 7% (SBP refinance rate is
Core categories 3%) for 10 years. This scheme is available for
 Textile and Garments (Fabric, garments, all manufacturing industries, with the
made-ups, Towels, Art Silk and synthetic) exception of power sector.
 Rice Processing
 Leather and leather products C. Duty Drawback Schemes by
 Sports goods Ministry of Commerce
 Carpets and wools To facilitate exporters, Ministry of Commerce
 Surgical instruments has provided the facility of duty drawback on
Development categories local taxes and levies to both textile and non-
 Fisheries (boat manufacturing/ textile sector.
modification and chilling equipment) Ministry has issued, in this regards:
 Meat and Poultry (hatching purposes and
equipment for preservation / packing / i. “SRO. 711(I)/2018” dated June 8th,
canning chicken & meat) 2018 for non-textile sector
 Fruits/Vegetable & Processing, Cereals The categories eligible for DTRE includes:
gloves; footballs and other sports goods; leather
garments; footwear; cutlery; electrical fan;
42 Allowed as per Export Policy order issued by MoC
~ 27 ~
transport equipment; auto parts and E. Imported items exempted for Sales tax
accessories; machinery including electrical All goods imported into Pakistan are liable to
machinery; furniture; stationary; fruits and sales tax at the time of import, except goods
vegetables and meat and meat preparations. specifically exempted under section 13 as
mentioned in Sixth Schedule of the Sales tax
ii. Notification No.1(42-B) TID/18-TR-II” act, 1990 (amended up to 30th June,2020).
for textile sector (See: exempted imports along with the PCT
The scope of the notification extends to textile codes)
based products under three broad categories https://download1.fbr.gov.pk/Docs/202081
namely Garment, Made-ups, and Processed 2168165722SalesTaxAct,1990updatedupto(3
fibers. 0.06.2020)--.pdf
The duty drawback under the aforementioned

F. Imported items exempted for Federal
SROs and notifications is allowed for the
Excise duty
shipments made from 1st July, 2018 to 30th June,
2021. The scope of the facility has been extended
Goods imported in Pakistan are subject to
to include even the export processing zones of federal excise duty. Finance act 2007 has
the country. Under the facility, 50% of the exempted imported goods from such
drawback is directly given to the exporter while compulsion. Currently only a limited number
certain conditions are put in place for the of items face FED in Pakistan. The list of such
remaining 50% of the drawback. An increment items is included in the First Schedule of
of 10% or more in the export performance from Federal Excise Act, 2005 (amended up to 30th
the previous year is required in order to be June,2020).
eligible for the remaining 50% of the drawback. (See: list of excisable imports along with duty
In case the exporter has targeted non-traditional rate)
markets an additional 2% drawback is allowed. https://download1.fbr.gov.pk/Docs/2020
Non- traditional markets in this regard includes: 812168190190FEDAct,2005updatedupto3
58 African markets, 40 Latin American markets 0-06-2020--.pdf
and 8 Commonwealth of independent states.
D. Import Tariff Rationalization

In order to enhance the competitiveness of the
domestic industry and to facilitate the
manufacturers-cum-exporters Government of
Pakistan has gradually liberalized tariffs. The
number of general tariff slabs are gradually
reduced.
In the Finance Act FY2019-20, tariff on 1,635
tariff lines comprising raw materials and
capital goods was reduced from 3% to 0%. The
current four duty slabs are 3%, 11%, 16% and
20%, with a large number of tariff lines subject
to additional duty of 2%, 4% to 7%.
~ 28 ~
Section 4:
Doing Business in Pakistan
~ 29 ~
Steps to Start Business in Pakistan
New to doing business in

Register a business Pakistan?
Apply for construction permit
Apply for Electricity connection
Register a property
Register and pay taxes
Customs clearance
Figure 6: Steps to start business in Pakistan
Step 1: Register a business
Relevant agencies
1. Register Limited Liability company: Security & Exchange Commission of Pakistan43

2. Register Unlimited Liability Company:
a. Ease of doing business, Government of Sindh44
b. Ease of doing business, Government of Punjab45
Step 2: Apply for construction permit
Relevant agencies
1. Apply permit in Sindh: Sindh Building Control Authority46
43 https://eservices.secp.gov.pk/eServices/
44 http://business.sindh.gov.pk/
45 https://register.business.punjab.gov.pk/
46 https://sbca.gos.pk/
~ 30 ~
2. Apply permit in Punjab:

a. E-Khidmat Centers47
b. Lahore Development Authority48
Step 3: Apply for electricity connection
Relevant agencies
1. Apply connection in Sindh: Karachi Electric (K-electric)49

2. Apply connection in Punjab: Lahore Electric Supply Company (LESCO)50
Step 4: Register a property
Relevant agencies
1. Register a property in Sindh: Board of Revenue Sindh51

2. Register a property in Punjab: Punjab Land record Authority52
Step 5: Register and pay taxes
Relevant agencies
1. Register, File and pay taxes online: FBR IRIS Porta53l

2. Register and file sales tax online: FBR eFile Portal54
Step 6: Customs Clearance
Relevant agencies
1. FBR’s WeBOC Portal55
47 https://fc.punjab.gov.pk/
48 https://www.lda.gop.pk/
49 https://www.ke.com.pk/
50 http://www.lesco.gov.pk/
51 https://sindhzameen.gos.pk/
52 https://www.punjab-zameen.gov.pk/
53 https://iris.fbr.gov.pk/public/txplogin.xhtml
54 https://e.fbr.gov.pk/AuthLogin.aspx
55 https://www.weboc.gov.pk/(S(3tqg1ppt5rxd3mqksrj54gcs))/Login.aspx
~ 31 ~
Pakistan’s Doing Business performance in Pakistan also increased the transparency

DB 2020 of electricity tariff changes. This reform
Pakistan is constantly making efforts to applies to both Karachi and Lahore.
improve business environment in the country in
collaboration with World Bank, International 4. Registering Property: Pakistan (Karachi)
Finance Corporation and UKaid. Since 2016, made property registration faster by
almost 300 reforms have been implemented to making it easier to execute and register a
improve investment climate in the country. deed at the Office of the Sub-Registrar.
During last year, Pakistan advanced 28 places Pakistan (Lahore) made registering
to 108th place on ease of doing business global property easier by increasing the
ranking. On the measure of absolute progress transparency of the land administration
towards best practice, Pakistan has improved system.
its score from 55.31to 61.00 and was recognized
as the top reformer in South Asia and sixth 5. Paying Taxes: Pakistan made paying
reformer in the world. The improved taxes easier by introducing online
performance indicators for year 2020 are: payment modules for value added tax and
corporate income tax, and less costly by
1. Starting a business: Pakistan made reducing the corporate income tax rate.
starting a business easier by expanding This reform applies to both Karachi and
procedures available through the online Lahore.
one-stop shop. This reform applies to both
Karachi and Lahore. Furthermore, 6. Trading across Borders: Pakistan made
Pakistan has abolished the Labor trading across borders easier by
Department registration fee for Lahore. enhancing the integration of various
agencies in the Web-Based One Customs
2. Dealing with Construction Permits: (WEBOC) electronic system and
Pakistan made obtaining a construction coordinating joint physical inspections at
permit easier and faster by streamlining the port. This reform applies to both
the approval process and also made Karachi and Lahore.
construction safer by ensuring that
building quality inspections take place
regularly in Karachi. While in Lahore the
operational efficiency has been improved
by establishing one-stop shop for
construction permitting.
3. Getting Electricity: Pakistan made getting

electricity easier by enforcing service
delivery time frames and by launching an
online portal for new applications.
~ 32 ~
6th EODB Reform Plan for DB 2022

6th reform plan has been devised, in consultation with all federal and provincial stakeholders, private
sectors and world bank local team for the doing business report 2022, containing more than 90
reform actions across all 10 business indicators.
The 6th plan for DB 2022 involves:
Table 9: Reforms for DB 2022 to be completed in year 2020

DB indicator Reforms for DB 2022 to be completed in
year 2020
Starting a business  PITB 56 is integrating Punjab Business
Registration Portal with FBR
Dealing with construction permit  LDA57 is making it mandatory to obtain
an insurance policy to cover possible
structural flaws or problems in the
building once it is in use.
 SBCA 58 and LDA is introducing GIS for
eliminating initial physical inspection of
site.
 LDA is also trying to introduce online
payment system through all banks
Getting Electricity  K. E 59 is updating interactive interface
for more proactive and transparent
communication
Registering property  BOR/PIBT are fully automating the
process of issuance of stamp duties.
 BOR 60 Sindh is launching an online
application for issuance of Sale
Certificate.
Getting credit  E-registry has been operationalized this
will improve the strength of legal rights
index for Pakistan
 SBP is expanding e-CIB capacity to
maintain overdue/default history for a
period of 2 years.
 SBP is also sharing of data from utilities
and retail companies with the Private
Credit Bureaus
56 Punjab Information Technology Board

57 Lahore development Authority
58 Sindh Building Control Authority
59 K-electric
60 Board of Revenue
~ 33 ~
Protecting Minority investor  Related party regulations have been

amended to enhance disclosure and
transparency
Paying Taxes  FBR has simplified tax regulations,
reduced VAT return filing time to 49
hours, reduced withholding tax
transactions, and started issuing
corporate tax refunds through direct
bank transfers.
Trading across borders  FBR/Customs is trying to introduce the
idea of packing and repacking of goods
by single agency as per the international
practice.
 Smart Examination systems at ports is to
be improved to reduce clearance time
Enforcing Contracts In order to operationalize commercial courts
with legal support, Commercial law is under
review and approval in Punjab. Other reforms
include:
 E-filling of claims, reduction of filing and
service timeframe to 6 days, trial and
judgement time frame to 118 days,
enforcement of judgement timeframe
to40 days
 Introduction of case management
practices to address delays during the
trial period
 Introducing financial incentives for the
parties to attempt mediations
 Introducing e-filling of initial complaints
in commercial cases
 Introducing pretrial conferences as a
critical element of case management
Resolving Insolvency SECP is creating awareness about insolvency
related laws amongst corporate entities and
legal practitioners.
Source: https://pakistandoingbusiness.com/
~ 34 ~
Section 5:
Pakistan’s Companies Act
~ 35 ~
Mode of forming a company

Companies Act, 2017
Pakistan had adopted its first Companies Act  Three or more persons may form a public
of 1913 right after its creation in 1947. The company
Companies Act, 1913 remained in operation  Two or more persons may form a private
and existence until the Companies Ordinance, company
1984 was promulgated to regulate the  One person may form a single member
corporate entities in Pakistan. The Companies company
Ordinance, 1984 was a major breakthrough in A company formed may be a company with or
terms of streamlining of corporate laws without limited liability, that is:
keeping in view the local business a) a company limited by shares;
environment and it governed the corporate b) company limited by guarantee; or
regime for more than three decades. c) An unlimited company
To incorporate the changes of the modern
time, another act promulgated in, 2017 which Incorporation
replaced the Companies Ordinance, 1984. In Incorporation is made easier as:
continuation of those efforts, the most recent  Process of company registration is
development is the promulgation of simplified by filling one form with model
Companies (second Amendment) Ordinance. memorandum62 and article of association.
These amendments have been made in the  The memorandum should state the
context of Ease of Doing Business. At the same principle line of business and any change.
time, certain powers previously given subsequently to be notified within 30 days.
conferred on the Minister in Charge to ease out  The company can engage in any lawful
the process have now been taken away, in business as per section 26.
most of the cases.  Directors and CEO to be appointed at the
The Companies act 201761, with 515 sections time of incorporation and no separate
and 8 schedules, facilitates corporatization filling is required subsequently.
and promotes development of corporate
 Registered address is not required at the
sector, encourages use of technology and time of incorporation and application can
electronic means in conduct of business and
be filed using correspondence address
regulation thereof, regulates corporate only.
entities for protecting interests of
 Share money to be deposited within 30
shareholders, creditors, other stakeholders
days of incorporation.
and general public, inculcate principles of
 Receipt of subscription money to be
good governance and safeguard minority
certified by a chartered accountant or a
interests in corporate entities and provide an
cost or management accountant within 45
alternate mechanism for expeditious
resolution of corporate disputes and matters.
 Registered office to be intimated within 30
Main facilities provided in the law includes:
61Companies Act, 2017

62―memorandum‖ means the memorandum of association of a company as originally framed or as altered from time to
time in pursuance of company law or of this Act;
~ 36 ~
Commencement of business by a public with the Registrar on or before the date of its
company (section 19) publication.
Public limited company is required to obtain Certificate of Shares66
Certificate of Commencement of business The Act reduces the time limit for every
before starting business. For private company for the issue of certificates from 90
businesses acceptance of documents by the days to 30 days after the allotment of any of its
registrar is the conclusive evidence for a share and other securities and ensure delivery
company to start business and no certificates of the certificates to the person entitled
are required. thereto at his registered address.
Documentation Meeting and Procedures

Memorandum and Articles Statutory Meeting
As per the Act the process of alteration in The meeting shall be convened within a period
Memorandum of Association63 and Articles64 of 180 days from the date at which company is
is simplified as: entitled to commence business or within nine
Alteration would take effect by special months from the date of its incorporation
resolution whichever is earlier.
 Change in principle line of business does Under the Ordinance the statutory meeting
not require approval from commission, was required to be held within a period of not
only amended memorandum to be filled less than 3 months nor more than 6 months,
with the registrar within 30 days. from the date of commencement of business.
 Where change is related with change in Where first annual general meeting of a
place of registered office or adoption of company is decided to be held earlier no
any business activity or any change statutory meeting shall be required. Further
therein which is subject to license, statutory report is required to be certified by
registration, permission or approval the Chief Executive Officer and at least one
under any law require approval from Director, and in case of listed company also by
Commission. the Chief Financial Officer.
 A copy of the altered articles of association Annual General Meeting / Extraordinary
shall within 30 days of from the date of General
passing of resolution, be filled with the Meeting within period of 16 months from the
registrar for registration as articles of date of its incorporation a company is
association of company. required to hold its first annual general
Prospectus65 meeting. Previously it was required to be held
The Act requires the company to get its within a period of 18 months from the date of
prospectus duly signed by every person who is incorporation. Subsequent meetings are
named therein as a director or proposed required to be held every year within a period
director of the company and has been filed of 120 days from the date of closure of
financial year. The requirement of holding the
63 Section 32
64 Section 38
65 Section 57
66 Section 71
~ 37 ~
subsequent annual general meeting within 15 Key Personnel

months after the holding of its last preceding MEMBERS67
annual general meeting is no longer A complete and comprehensive definition of
applicable. Single member company is “member” has been inserted in the statute,
exempted from the requirements to hold with clarity that on the registration of a
annual general meeting. Previously it was company, the subscribers of the memorandum
expressly stated that notice of an shall become its members.
extraordinary general meeting be sent to the
members at least 21 days before the date of DIRECTORS
the meeting and in case of an emergency (a) Now, foreign persons who are not
affecting the business of the company, the required to hold NTN68 are no more ineligible
registrar on application of directors authorize to become director of a company. The Clause
such meeting be held at such shorter notice as of ineligibility of a person, who is or whose
specified. However, such requirement is no spouse is engaged in business of brokerage is
longer specified. Further for companies other extended to include Future Market Brokers
than listed companies if all members entitled and their spouses.
to attend and vote at any extra ordinary (b) A person representing a creditor or other
general meeting so agree the meeting may be special interests by virtue of contractual
held at a shorter notice. listed companies are arrangements and a person representing a
required to hold AGM only in the town where member which is not a natural person are
registered office is situated. Commission can eligible to be a director even if he is not a
allow to hold AGM in any other city. member of the company.
Quorum of General Meeting Minimum number of directors
(1) The quorum requirement of a general Minimum number of directors in case of
meeting also takes into account members public limited company is 7 while it is 2 in case
attending through video-link in addition to of private limited company. Additionally,
members present personally. public interest companies shall be required to
(2) The quorum of a company not having share have female representation on their Board as
capital shall be as provided in its articles. may be specified by the Commission, and only
Proxies natural person shall become a director.
The provision on proxies shall continue to be Disqualification of Director
not applicable in the case of a company not Through second amendment ordinance 2020
having a share capital unless the articles of the in July 2020, SECP has been empowered to
company provide otherwise. These powers disqualify a director in the following cases:
under the articles were not available in the 1. against a person who entered into plea
Ordinance bargain arrangements with NAB;
2. that it is expedient in the public interest so
to do.
67 Section 118
68Section 153 of companies’ amendment act, May 2020
https://cdn-cms.crowe.com/pk/-/media/Crowe/Firms/Asia-
Pacific/pk/CroweHorwathPK/1Updates/Companies-Act-2017--Significant-Amendments-May-
2020.pdf?la=en-
GB&modified=20200627142942&hash=574BDC760EA5D9C2B2126D938FAA370014E28DF9
~ 38 ~
CHIEF EXECUTIVE company and effectiveness of the role played

Appointment of subsequent chief executive by the board in achieving the company’s
The subscribers to the memorandum objectives.
determine the name of the first chief executive
and the particulars, submitted along with SECRETARY
incorporation documents. The first chief Requirement for appointing a company
executive hold office till the 1st AGM of the secretary having the specified qualifications
company. The Federal Government has been has been extended to all public companies
empowered to appoint Chief executive of a instead of listed companies only mentioned in
Public Sector Company in such a manner as the Ordinance 1984. SMCs have been
may be specified under this Act. The exempted from appointing company
subsequent chief executive for the next term of secretary.
3 years be appointed by the directors within
14 days from the date of elections. The Chief AUDITORS
Executive appointed on casual vacancy hold Appointment, removal and fee of auditors
that office till the directors elected in the next The first auditors now to be appointed within
election appoint a chief executive. ninety days of incorporation against 60 days in
Removal of chief executive previous Ordinance. The requirement of
Notwithstanding anything contained in the sending the representation of retiring
law, the Government or an authority or a auditors, (when they are not proposed to be
person authorized by it have the power to reelected) to the members has been abolished.
remove chief executive of a company where Reading of the representation of retiring
more than seventy-five percent of the voting auditors in the meeting shall serve the
rights are held by the Government. purpose. Time frame of 30 days has been
Chairman in a listed company prescribed to fill the casual vacancy of auditor.
The board of listed companies appoints the In case of removal, the auditor shall only be
chairman from amongst the non-executive removed with the approval of the Commission.
directors within 14 days from the date of In addition to it, the law also permits a
election of directors, who holds office for a member (of listed company) having not less
period of three years unless he earlier resigns, than 10% shareholding of the company to
becomes ineligible or disqualified under any propose any auditor or auditors for
provision of the Act or removed by the appointment whose consent has been
directors. The chairman and the chief obtained by him and a notice in this regard has
executive shall not be the same individual been given to the company not less than 7 days
except where provided for under any other before the date of the annual general meeting.
law and the board is required to clearly define Such a notice is also to be posted on the
their respective roles and responsibilities. The company’s website
chairman shall be responsible for leadership Qualification and disqualification of
of the board and ensure that the board plays auditors
an effective role in fulfilling its responsibilities. Conditions have been prescribed for the
Every financial statements of the company is qualification and disqualification of auditors,
required to contain a review report by the such as the qualification of an auditor for
chairman on the overall performance of the public company or a private company which is
~ 39 ~
subsidiary of a public company or a private auditor shall conduct the audit and prepare his
company having paid up capital of Rs 10,000 report in compliance with the requirements of
000 or more is a chartered accountant having International Standards on Auditing as
valid certificate of practice from the Institute adopted by the Institute of Chartered
of Chartered Accountants of Pakistan or a firm Accountants of Pakistan. Additional
of chartered accountants. Audit of private requirements - A company’s auditor must
company having paid up capital of less than Rs. carry out such examination to enable him to
10,000,000 can be conducted by either a form an opinion as to: whether adequate
Chartered Accountant or Cost Management accounting records have been kept by the
Accountant. Previously it was not defined and company and returns adequate for their audit
anyone could conduct audit of private have been received from branches not visited
companies having paid up capital below Rs. by him; and whether the company’s financial
3,000,000. The auditor will continue to be statements are in agreement with the
appointed by the firm name. Majority of the accounting records and returns. The auditor
partners of such firm should hold a valid shall express unmodified or modified opinion
practice license. Previously this requirement in his report in compliance with the
was for all the partners. As regards requirements of International Standards on
disqualification of auditors, these conditions Auditing as adopted by the Institute of
now include inter alia a person who has given Chartered Accountants of Pakistan. The
a guarantee or provided any security in Commission may by general or special order,
connection with the indebtedness of any third direct, that the statement of compliance, shall
person to the company other than in the be reviewed by the auditor who shall issue a
ordinary course of business of such entities; a review report to the members on the format
person or a firm who, whether directly or specified by the Commission
indirectly, has business relationship with the Audit of cost accounts The audit of cost
company other than in the ordinary course of accounts shall not be mandatory but shall be
business of such entities; a person who is not directed by the Commission subject to the
eligible to act as auditor under the code of recommendation of the regulatory authority
ethics as adopted by the Institute of Chartered supervising the business of relevant sector
Accountants of Pakistan and the Institute of
Cost and Management Accountants of
Compliance
Pakistan
Code of Corporate Governance
Rights of auditor
The Commission is expected to provide a
Additional rights have been given to the
framework to ensure good corporate
auditors to call for and obtain information
governance practices, compliance and matters
from officers and employees of the company
incidental and axillary for companies or class
as well as from the subsidiary companies and
of companies in a manner as may be specified.
its officers and employees
Duties of auditor
the law obligates the company’s auditor,
within 14 days of appointment to submit a
copy of the consent letter given to the
company, to the registrar. A company’s
~ 40 ~
Restrictions and prohibitions Alteration of Share Capital71

Restriction on transfer of shares by the Condition of a special resolution to increase /
members of a Private Company69 consolidate / divide share has been made
The law restricts the right of transfer of shares mandatory in the law.
in a private company by members and
provides a process to enable members to Related party transactions
transfer their shares in a private company. The
The expression ―’related party’ includes
main points of in this regard are highlighted
i. A director or his relative: ii. A key managerial
below:
personnel or his relative; iii. A firm, in which a
(1) A member of a private company desirous
director, manager or his relative is a partner;
to sell any shares held by him shall intimate to
iv. A private company in which a director or
the Board his intention through a notice.
manager is a member or director; v. A public
(2) On receipt of such notice, the Board, within
company in which a director or manager is a
a period of ten days, shall offer those shares for
director or holds along with his relatives, any
sale to the members in proportion to their
shares of its paid up share capital; (vi)
existing shareholding.
Anybody corporate whose chief executive or
(3) The letter of offer for sale specifying the
manager is accustomed to act in accordance
number of shares to which the member is
with the advice, directions or instructions of a
entitled, price per share and limiting a time,
director or manager; (vii) Any person on
within which the offer, if not accepted, be
whose advice, directions or instructions a
deemed as declined, shall be dispatched to the
director or manager is accustomed to act:
members through registered post or courier
Provided that nothing in sub-clauses (vi) and
or through electronic mode.
(vii) shall apply to the advice, directions or
(4) If the whole or any part of the shares
instructions given in a professional capacity;
offered is declined or is not taken, the Board
(viii) Any company which is— (a) A holding,
may offer such shares to the other members in
subsidiary or an associated company of such
proportion to their shareholding.
company; or (b) A subsidiary of a holding
(5) If all the members refuse to accept the offer
company to which it is also a subsidiary; (xi)
or if any shares are left over, such shares may
Such other person as may be specified. A
be sold to any other person as determined by
company may enter into any contract or
the member, who initiated the offer.
arrangement with a related party only in
Prohibition on acceptance of deposits
accordance with the policy approved by the
from public70
board, subject to such conditions as may be
Only specialized companies (i.e. Banking
specified, with respect to- (a) Sale, purchase or
companies and such other company or class of
supply of any goods or materials; (b) Selling or
companies or such deposits as the
otherwise disposing of, or buying, property of
Commission may notify) are allowed to raise
any kind; (c) Leasing of property of any kind;
deposit from public. A company shall be
(d) Availing or rendering of any services; (e)
punishable in the event it accepts or invites
Appointment of any agent for purchase or sale
any deposit.
of goods, materials, services or property; and
69 Section 76
70 Section 84
71 Section 85
~ 41 ~
(f) Such related party's appointment to any other case by the registrar. The condition for
office or place of profit in the company, its audit is not applicable to a private company
subsidiary company or associated company: having paid up capital not exceeding Rs.
1,000,000 (Except Public Interest company,
subsidiary of a public company, holding
Company accounts
company of a subsidiary company as provided
Maintenance of Books of account
in 1st amendment 2020).
Every company is required to prepare and
For a listed company, the provision for
keep at its registered office books of account,
sending the financial statements electronically
relevant books and papers, financial
and posting it on Company’s website have
statements for every financial year which give
been added. This rule is not applicable for to
a true and fair value of the state of affairs of the
Single Member Company, however, audit of
company and that of its branch office.
financial statements having paid up capital
Where a company has a branch office in or
exceeding Rs. 1,000,000 is mandatory.
outside Pakistan, proper books of account
relating to the transactions effected at the
branch office are required to be kept at the Dividend
office and proper summarized returns are A new provision has been added in law
required to be sent periodically by the branch whereby companies are allowed to pay the
office to the company at its registered office. dividends in kind. Any dividend may be paid
In the case of financial information, if any, by a company either in cash or in kind only out
maintained outside the country, copies of such of its profits. The payment of dividend in kind
financial information shall be maintained and shall only be in the shape of shares of listed
produced for inspection by any director. company held by the distributing company.
The responsibility of maintaining and Directors are not allowed hold declared
producing books of accounts lies with every dividend.
director, chief executive, chief financial officer
of the company.
Power of registrar
Inspection of books of accounts by
The Act empowers the registrar, inspector or
Commission
investigation officer to obtain permission from
The law allows any officer making the
Commission, without warrants, instead of
inspection of the books of accounts, to inter
Magistrate of Court, as Companies Ordinance
alia take possession of such documents and
1984 directed, to freeze, seize or take
retain them for thirty days if there are
possession of and retain any document, object,
reasonable grounds for believing that they are
article, material, thing, account books,
evidence of the commission of an offence.
movable or immovable property or any
Financial statements
account, property or thing, if he has reasons to
The first financial statement must be laid at
believe that documents, books and papers or
the AGM within 16 months (previously this
anything relating to any company or any chief
was 18 months) from the date of
executive or officer of such company or any
incorporation of the company, thereafter,
associate of such person or is useful or
within 120 days following the close of financial
relevant to any proceedings or investigation
year. This can be extended by 30 days, by the
Commission for listed company and in any
~ 42 ~
under this Act which is required or may be upon revocation of a license granted by the
destroyed. Commission or any other licensing authority;
or if a listed company suspend its business for
Amalgamation of wholly owned
a whole yea
subsidiaries in holding company
Court may ascertain wishes of creditors or
The law allows amalgamation of wholly
contributories. In addition to this Court may
owned subsidiaries, directly or indirectly, into
ascertain wishes of creditors or contributories
holding companies without the involvement of
in all matters relating to the winding up of a
Commission to facilitate amalgamation,
company if it thinks fit for the purpose of
subject to the conditions that: a) the scheme of
ascertaining their wishes, order meetings of
amalgamation is approved by the board of
the creditors or contributories to be called,
each amalgamating company; and b) each
held and conducted in such manner as may be
resolution provides that i. The shares of each
directed; and appoint a person to act as
transferor company, other than the transferee
chairman of any such meeting and to submit a
company, will be cancelled without payment
report in this regard. Further, weightage to
or other consideration; and ii. The board is
wishes shall be based on the value of debt and
satisfied that the transferee company will be
voting power.
able to pay its debts as they fall due during the
Appointment of official liquidator
period of one year immediately after the date
The Commission shall maintain a panel for
on which the amalgamation is to become
appointment of provisional manager and
effective and a declaration verified by an
official liquidator of a company or a company
affidavit to the effect will be filed with the
to be wound up. Panel shall consist of
registrar; and iii. The person or persons
chartered accountants, advocates, company
named in the resolution will be the director or
secretaries, cost and management
directors of the transferee company. Any
accountants, retired public servants having
contravention or default in complying with
relevant experience and such other persons as
requirements of this rule is an offence liable to
specified by the Commission, having at least
a penalty.
ten years’ professional experience.
Removal of official liquidator
Winding up by court The Court may, on a reasonable cause being
In the circumstances in which a company may shown including but not limited to lack of
be wound up by court following additional independence or lack of impartiality, remove
provisions have been added. the provisional manager or the official
if the company has made a default in filing with liquidator, as the case may be, on any of the
the registrar its financial statements or annual following grounds, namely: a) misconduct; b)
returns for immediately preceding two fraud or misfeasance; c) professional
consecutive financial years; or if the company incompetence or failure to exercise due care
is carrying on business prohibited by any law and diligence in performance of the powers
for the time being in force in Pakistan; or and functions; d) inability to act as provisional
restricted by any law, rules or regulations for manager or official liquidator, as the case may
the time being in force in Pakistan; or if the be; e) conflict of interest during the term of his
sole business of the company is the licensed appointment that will justify removal. Where
activity and it ceases to operate consequent the Court is of the opinion that any liquidator
~ 43 ~
is responsible for causing any loss or damage

to the company due to fraud or misfeasance or
failure to exercise due care and diligence in the
performance of his powers and functions, the
Court may recover or cause to be recovered
such loss or damage from the provisional
manager or official liquidator.
Powers and duties of official liquidator
Following additional powers have been given
to liquidator: to sell whole of the undertaking
of the company as a going concern; to appoint
an Advocate entitled to appear before the
Court or such person as may be prescribed to
assist him in the performance of his duties.
Conversion of a company of any class into

a company of other class and related
matters72
The process for change from public to private,
private to single member company, unlimited
to limited liability, limited by guarantee to
limited by shares and vice versa, for each of
the categories requires the Company to pass a
special resolution and seek prior approval of
the Commission.
72 Section 46 to 50
~ 44 ~
Section 6:
Pakistan’s Corporate Tax Regulation
~ 45 ~
Corporate Income Tax

Pakistan has the lowest corporate tax rate in the region, the corporate tax rate is 29% for the tax year
2020 and is imposed on the net taxable income of a company. Whereas, Small companies are taxed
at 23% rate that gradually will reduce by 1% annually till tax year 2023.
The federal corporate tax rates applicable on taxable income for year 2021 are given in table below:
Company Type Taxable Income Tax Rate
Resident Company73 Worldwide income

29%
Non-Resident Company Pakistani Income
If the tax payable by a company is less than 1.5% of the turnover
Worldwide income (except The tax liability in that case

Resident Company will be higher of alternative
builder or developer)
corporate tax, 17% of
accounting income, or the
Pakistani Income (except total of corporate tax
Non-Resident Company (including tax on net taxable
builder or developer)
income, minimum tax and
final taxes
Tax rate related with type of Company
Banking company 35%
Public company other than banking

29%
company
Any other company 29%
Small company 23%
Figure 7: Corporate tax structure in Pakistan
73 A company is termed as resident if it is incorporated under the laws of Pakistan or if its management and controls are
situated wholly in Pakistan. In this context, branches of foreign companies are considered non- residents.
~ 46 ~
Capital Gain Tax

Capital gain derived from the sale of immovable property are taxed under the normal tax regime at
rates that depends on the amount of gains, and to the extent of a prescribed percentage of the gains
that is computed based on the length of time the property was held.
The gain on open plot with holding period of one year is fully taxable. If the holding period is between
one to ten years 75% of the gain is taxable while after ten years, there is no tax on capital gain.
The capital gain tax rates for sale of immovable property are:
Amount of gains Rate of capital gain tax applicable

PKR 5 Million 5%
PKR 5 Million up to PKR 10 million 10%
PKR 10 Million up to PKR 15 million 15%
Exceeding PKR 15 Million 20%

Table 10: Rate applicable for Capital gain
Withholding Tax
Withholding is an act of deduction or collection of tax at source. In Pakistan, withholding provisions
relate to salary, imports, exports, commission and brokerage, dividend, contracts, profit on debt,
utilities, vehicles tax, stock exchange-related provisions and non-residents, etc., with varying rates.
Table 11: Withholding Tax rates for resident and non-resident companies
Type of Payment Residents Non-Residents

Dividends 7.5% or 25% 15%
Interests 10%, 15% 10%

Royalties 15% 15%
Fees for technical services 3%, 8% 15%
~ 47 ~
Withholding tax paid in relation to exports
Who will
Tax
Taxable Transaction deduct/ From Whom
rate
collect/ agent
Export of goods 1% of Every Exporter
gross Authorized
value dealer in
Foreign
Exchange
Realization of proceeds on account of 5% of Every Non export
commission to non-export indenting agent or gross Authorized indenting agent
buying houses value dealer in or buying houses
Foreign
Exchange
On realization of proceeds on account of sale 1% Every banking Exporter
of goods to an exporter under inland bac to company
back LC or any other arrangement may be
prescribed by FBR
Exports of goods located in Export Processing 1% of BPZ authority Industrial
Zone (BPZ) gross undertaking
value located in Export
Processing Zone
Payments to Indirect Exporters as defined in 1% of Direct Indirect
DTRE (Duty and tax remission for exporters) gross Exporters/ Exporters
rules, 2001 value Export house
registered
under DTRE
Payment to indirect exporters as defined in 1% of Direct Indirect
DTRE (Duty and Tax remission for exporters) gross Exporters/ Exporters
rules, 2001 value export house
registered
under DTRE
Clearance of goods exported 1% of Collector of Exporter of
gross custom goods
value
Table 12: WHT in relation to exports74
74 https://download1.fbr.gov.pk/Docs/2020728147649624WHTRateCard-Amended.pdf
~ 48 ~
Pakistan’s Trade and Investment

Facilitation Missions in the World
~ 49 ~
Trade Missions Abroad
Contact Address and

Country Officer
numbers Email
Dr. Muhammad Off: (0093- Embassy of
Yousaf Khan / 20)2202793, Pakistan,
Minister (Trade & 2202773, Ext: (00 Commercial
Investment) 93-20)2202745-6 Section, Karte
Parwan, Kabul.
Afghanistan / Kabul
Fax: (0093-20)2202871 Email: mti.kabul@com
merce.gov.pk,
commwing@pak
embassykabul.co
m
Cell: (0093)783482624
Res: (0093)786492221 URL: www.pakembass
ykabul.com
Mr. Asif Khan / Off: Consulate
Trade & General of
Investment Pakistan,
Counsellor Commercial
Section, Noroz
Shah Burj,
Afghanistan / Kandahar
Ansari Mena,
Kandahar.
Fax: (0093-81)820066 Email: tic.kandahar@co
mmerce.gov.pk,
asifkhan94@gm
ail.com
Cell: (0093)787176277
Res: (0093)702622351 URL: www.mofa.gov.p
k/kandahar/
Mr. M. Qazafi Rind Off: (00213) Villa No. 06,
/ Trade & 23472442, Chemin
Investment (00213) 23472041 Abdelkader
Counsellor Gadouche,
Algeria / Algiers Lotissement
Pyzanne, Post
Code 16035
Hydra, Algiers
Fax: (00213)23472650 Email: tic.algiers@com
merce.gov.pk,
parepalgiers@m
ofa.gov.pk
~ 50 ~
Cell: (00213)798
384836
Res: URL: mofa.gov.pk/alg
eria-our-team/
Mr. Jamil Ahmed Off: (0054- Commercial
Baloch / Trade & 11)47751294, Section,
Investment (0054- Embassy of
Counsellor 11)47738081, Dir: Pakistan, Olleros
(0054- 2130 (1426),
11)51975888 Ciudad
Argentina / Buenos Autonoma de
Aires Buenos Aires
(Argentina).
Fax: (0054- Email: tic.buenosaires
11)47761186 @commerce.gov.
pk,
pakcommar@gm
ail.com
Cell:
Res: URL: www.mofa.gov.p
k/argentina/
Mr. Muhammad Off: (0061- Consulate
Ashraf / Consul 2)92205601, General of
General (Trade & (0061-2)92205606 Pakistan, Level-
Investment) 3, 109 Pitt
Street, N.S.W.
Sydney 2000
(GPO Box No.
5256), Australia.
Australia / Sydney
Fax: (0061-2)92230140 Email: cg.sydney@com
merce.gov.pk,
acctts.admn@g
mail.com,
cg@pakconsulat
e.org.au
Cell: (0061) 438963131
Res: URL: www.pakistan.o
rg.au/high_com
mision_sydney.p
hp
Mr. M. Suleman Off: Dir: (00880- High
Khan / Trade & 2)58811900, Commission for
Bangladesh / Dhaka
Investment PABX: (00880- Pakistan, (Com.
Attache 2)9845388-9 Section) House
NE (C) 2, Road
No. 71, Gulshan
Avenue, Dhaka.
~ 51 ~
Fax: (00880- Email: tia.dhaka@com

2)58813316 merce.gov.pk,
pakcom.bdg@td
ap.gov.pk
Cell: (00880)19974442
22
k/bangladesh/
Mr. Omar Hameed Off: (0032-2)6759746 Pakistan Mission
/ Economic (Dir), (0032- to the European
Minister 2)6738007(Exch) Union, Belgium,
57-Avenue
Delleur, 1170-
Belgium / Brussels
Brussels.
Fax: (0032-2)6753137 Email: em.brussels@co
mmerce.gov.pk,
economic.sectio
n@belgacom.net
Cell: (0032)483515558
Res: (0032-2)3540743 URL: www.embassyof
pakistan.be
Mr. Salman Ali Off: (0032-2)6632729, Embassy of
Ch. / Trade & (0032-2)673800, Pakistan, 57
Investment (0032-2)6759746 Avenue Delleur,
Counsellor 1170 Brussels
(Belgium).
Belgium / Brussels Fax: (0032-2)6753137 Email: tic.brussels@co
mmerce.gov.pk,
commercialsecre
tary@embassyof
pakistan.be
Cell: (0032)
0476791478
Res: URL: www.embassyof
pakistan.be
Mr. Waqas Alam / Off: (0055- Commercial
Trade & 11)55051981 Section,
Investment Embassy of
Counsellor Pakistan,
Brazil / Sao Paulo Avenida Sao
Gabriel, 495;
Suite No. 72;
Jardim Paulista;
Sao Paulo;
Brazil. CEP (Post
Code) 01435-
001
~ 52 ~
Fax: (0055- Email: tic.saopaulo@co

11)55054934 mmerce.gov.pk,
pakccsp@yahoo.
com
Cell:
k/brazil/
Mr. Azhar H. Off: (001)5148452297, Consulate
Merchant / (001)5148452298 General of
Consul General Pakistan, 3421
(Trade & Peel Street,
Investment) Montreal,
Canada / Toronto Quebec H3A
1W7, Canada.
Fax: (001)5148451354 Email: tic.toronto@com
merce.gov.pk,
parepmontreal@
bellnet.ca
Cell:
Res: URL: www.pakmissio
n.ca/
Mr. Badar u Off: (0086- Embassy of
Zaman / Trade & 10)65322581 Pakistan,
Investment (Commercial
Counsellor Section) No.1,
Dong Zhi Men
Wei Da Jie,
Beijing 100600
China / Beijing China.
Fax: (0086- Email: tic.beijing.comm
10)65322872(Com erce.gov.pk,
), (0086- pakcomm_beijin
10)65322715(Dip) g@yahoo.com,
badrpk@gmail.c
om
Cell: (0086-
13)401083613
Res: URL: www.pakbj.org.p
k
Mr. Bilal Ahmed Off: (0085- Consulate
Butt / Consul 2)28271966, General of
China / Hong Kong
General (Trade & (0085-2)28270681 Pakistan, 803-4,
Investment) Tung Wai
Commercial
Building, 109-
111 Gloucester
~ 53 ~
Road, Wan Chai,

Hong Kong.
Fax: (0085-2)28276786 Email: cg.hongkong@co
mmerce.gov.pk,
consulate@pakis
tan.hk,
parephk@biznet
vigator.com
Cell: (0085-2)6353
2120
Res: URL: www.pakconhk.
com
Mr. Hussain Off: (0086- Consulate
Haider / Consul 21)62377000 General of
General (Trade & Pakistan, Suite
Investment) 1111, Tower A,
SOHO,
Zohongshan
Plaza, 1055 West
Zhongshan Road,
China / Shanghai
Shanghai,
200051, P.R.
China.
Fax: (0086- Email: cg.shanghai@co
cgpakshanghai@
yahoo.com
Cell: (0086)134
72617025
k/shanghai/
Mr. Muhammad Off: (0086- Consulate
Irfan / Trade & 28)85268051, General of
Investment (0086- Pakistan,
Counselor 28)85268316 Tongwei
International
Center, High
China / Guangzhou
Tech Zone,
No.588 Middle
Section of Tianfu
Avenue,8th Floo
r, Room No.2,
Chengdu
610041, Sichuan
Province (P.R.
(China)
~ 54 ~
Fax: (0086- Email: tic.guangzhou@c

28)64656052 ommerce.gov.pk,
commercepkcgc
d@hotmail.com
Cell: (0086)188
16791160
Res: URL: mofa.gov.pk/gua
ngzhou-china/
Ms. Sidrah Haque Off: (0020- Embassy of
/ Trade & 2)37487806, Pakistan, 8, El
Investment (0020-2)37487677 Saluli Street,
Attache Dokki, Giza,
Egypt / Cairo
Cairo
Fax: Email: tia.cairo@comm
erce.gov.pk
Cell: (0020)010217200
12
Res: URL: mofa.gov.pk/cair
o-egypt/
Mr. Munir Saddiq Off: (00251)111-261- Embassy of
/ Minister (Trade 492, (00251)111- Islamic Republic
& Investment) 261-193 of Pakistan,
House No: 146,
Arada sub city,
Woreda 7,
DejazmachWold
e, Gebriel, Street:
Near Gorgories
School. P.O. Box
Ethiopia / Addis Ababa No. 19795, Addis
Ababa
Fax: (00251)111-261- Email: mti.addisababa
324 @commerce.gov.
pk,
parepaddisabab
a@mofa.gov.pk,
parepaddisabab
a@gmail.com
Cell: (00251)99353184
4
Res: URL: mofa.gov.pk/add
is-ababa-
ethiopia/
France / Paris Mr. Moin-ud-Din Off: (0033- Embassy of
Wani / Trade & 1)4563362(Dir),(0 Pakistan
Investment 033- (Commercial
Counsellor 1)45619977(Exch) Section), 32 Rue
~ 55 ~
Washington
75008-Paris,
France.
Fax: (0033-1)45635366 Email: tic.paris@comm
erce.gov.pk,
pak.emb.comm
@wanadoo.fr,
pakcommsection
@gmail.com
Cell: (0033)755429964
Res: (0033)648518826, URL: www.pakembpa
(0033)758813953( ris.com
CA)
Khawaja Khurram Off: (0049-69)6976970 Consulate
Naeem / Trade & General of
Investment Pakistan,
Counsellor (Commercial
Germany / Frankfurt Division)
Beethoven
StraBe 4, 60325-
Frankfurt am
Main.
Fax: (0049- Email: tic.frankfurt@co
pakcom.frk@tda
p.gov.pk,
parep.cdf@t-
online.de
Cell: (0049)176-
84939628
Res: (0049)69- URL: www.pakmissio
68602603 nfrankfurt.de
Vacant / Off: (0091- High
(Minister) Trade 11)26110601, Commission for
& Investment (0091- Pakistan,
11)26110602 (Ext- Commercial
256), (0091- Section, 2/50-G,
India / New Delhi 11)26871820 Shantipath,
Chanakyapuri,
New Delhi-
110021
Fax: (0091- Email: mti.newdelhi@c
commpakhc.in@
gmail.com
Cell:
~ 56 ~
Res: URL: pakhcnewdelhi.o

rg.pk/
Ms. Fouzia Off: (0062- Embassy of
Perveen Ch. / 21)57851723 Islamic Republic
Minister (Trade & of Pakistan,
Investment) Commercial
Section, Jalan
Mega Kuningan
Barat, Block-
E.3.9, Kav. 5-8,
Indonesia / Jakarta Jakarta Selatan
12950
Fax: (0062- Email: mti.jakarta@co
pakembassyjaka
rta@gmail.com,
Pakrepjkt@rad.n
et.id
Cell: (0062)811810414
1
k/indonesia
Mr. Masood Off: (0098- Embassy of
Ahmed / Trade & 21)66944888-90, Pakistan, Block
Investment (0098- No.1, Koocha-e-
Counsellor 21)66941388-90, Ahmad
(0098- Eitrnadzadeh,
21)66913770(Dir) Khayaban-e-Dr.
Hussein Fatimi,
Iran / Tehran
Jamshedabad,
Shomali Tehran
14118, Iran.
Fax: (0098- Email: tic.tehran@com
tehrancomm@g
mail.com
Cell:
k/iran
Mr. Khalid Hanif / Off: (0039- Embassy of
Trade & 06)87694816 Pakistan,
Italy / Rome
Investment Commercial
Counsellor Section, Via
Della Camilluccia
682, 00135
Rome, Italy.
~ 57 ~
Fax: (0039-06)3296660 Email: tic.rome@comm

erce.gov.pk,
comsec@tiscali.i
t
Cell: (0039) 388
7215147
k/italy
Mr. Tahir Habib Off: (0081- Embassy of
Cheema / Trade 3)54213606, Pakistan
and Investment (0081- (Commercial
Counsellor 3)54217741/42 Section), 4-6-17,
Minami-Azabu,
Minato-ku,
Japan / Tokyo
Tokyo-106-0047
Fax: (0081-3)54213613 Email: tic.tokyo@comm
erce.gov.pk,
comsectk@yaho
o.com
Cell:
Res: URL: www.pakistane
mbassytokyo.co
m
Mr. Khadim Ali / Off: (00962- 17, Anwar Al
Trade and 6)4622787, Khateeb Street,
Investment (00962-6)4624680 North Abdoun,
Attache Amman P.O. Box
No. 1232,
Jordan / Amman Amman11118,
Jordan
Fax: (00962-6)4611633 Email: tia.amman@com
merce.gov.pk,
parepamman@
mofa.gov.pk
Cell: <
Res: URL: mofa.gov.pk/am
man-jordan/
Mr. Muhammad Off: (0077-27)2938604 Embassy of
Farooque / Trade Pakistan,
& Investment Commercial
Kazakhstan / Almaty
Counsellor Section, 2nd
floor, Building
No. 20 A,
Kazybek Street,
Medeuskiy
district, Almaty,
~ 58 ~
Kasakhstan
050010.
Fax: (0077-27)2938591 Email: tic.almaty@com
merce.gov.pk,
parepalmaty.tra
de@yahoo.com
Cell: (0077)775833006
mbassy.kz/
Mr. Laiq Daraz / Off: (00254- High
Trade and 20)4443911, Commission for
Investment (00254- Pakistan,
Counsellor 20)4443912, (Commercial
(00254- Section), St.
20)4447170 (Dir) Michael Road,
P.O.Box 30045,
Kenya / Nairobi
00100 GPO,
Nairobi, Kenya.
Fax: (00254- Email: tic.nairobi@com
info@pakhc.or.k
e
Cell: (0025-
4)711421505
Res: URL: www.pakhc.or.k
e
Mr. Shafqat Ali Off: (0060- High
Khan / Trade & 3)21648158, Commission for
Investment (0060-3)21618877 Pakistan,
Counsellor (Ext. 113) (Commercial
Section), 132-
Jalan Ampang
50450, Kuala
Malaysia / Kuala Lumpur,
Lumpur Malaysia
Fax: (0060-3)21625843 Email: tic.kualalumpur
@commerce.gov.
pk,
pakcommercial
@gmail.com
Cell:
k/malaysia,
www.pakistanhc
kl.com
Mexico / Mexico City Ms. Shabana Aziz Off: (0052- Boulevard de los
/ Trade & 55)52033636 Virreyes 1015,
~ 59 ~
Investment Col. Lomas de

Counsellor Chapultepec,
Seccion V,
11000, Mexico
City
Fax: (0052- Email: tic.mexicocity@c
parepmexico@m
ofa.gov.pk
Cell: (0052)155391428
07
Res: URL: mofa.gov.pk/me
xico/
Mr. Junaid A. Off: (0021- Embassy of
Memon / Trade & 2)522981864 Pakistan,
Counsellor Section, 294
Boulevard
Yacoub EL
Mansour, Espace
Anfa, 1er etage,
No 1,
Morocco / Casablanca
Casablanca,
Morocco.
Fax: (0021- Email: tic.casablanca@c
parepcasa@gma
il.com,
pakcom.mar@td
ap.gov.pk
Cell: (0021-
2)616840305
Res: (0021- URL: www.mofa.gov.p
2)522950177 k/morocco
Rao Rizwan-ul- Off: (0031- Embassy of
Haq / Trade & 70)3625075, Pakistan,
Investment (0031-70)3648948 Commercial
Counsellor (Ext.: 235) Wing,
Netherland / The Amaliastraat 8,
Hague 2514 JC, The
Hague, The
Netherlands.
Fax: (0031-70)3106047 Email: tic.thehague@co
mmerce.gov.pk,
commercial@pa
kembassy.nl
Cell:
~ 60 ~
Res: (0031- URL: www.embassyof

71)8885004 pakistan.com
Mr. Ali Tamkin Off: Maisonette 103,
Butt / Trade & Block 1, Cluster
Investment B 1004 Estate
Attache Victoria Island,
Lagos , Nigeria
Nigeria / Lagos
Fax: Email: tia.lagos@comm
erce.gov.pk,
cslagos17@gmai
l.com
Cell: (00234)70640004
33
76 k/nigeria
Mr. Muhammad Off: (0048- Embassy of
Zahid / Trade & 22)6463018, Pakistan,
Investment (0048- Commercial
Counsellor 22)8494808, Section, Ulica
(0048-22)8494938 Wiertnicza 63,
Poland / Warsaw 02-952, Warsaw,
Poland.
Fax: Email: tic.warsaw@com
merce.gov.pk,
pakcom.pol@tda
p.gov.pk
Cell:
k/poland
Mr. Muhammad Off: (00974)44835570 Embassy of
Salman Ali / Pakistan, Plot
Trade & No. 30,
Investment Diplomatic Area,
Attache Ambassador St.,
West Bay, Doha,
Qatar / Doha P.O. Box. 334.
Fax: (00974)33382776, Email: tia.doha@comm
(00974)44832227 erce.gov.pk,
(Dip) pakcomsec.doha
@gmail.com,
mhd.salman.ali
@gmail.com
Cell: (00974)50508240
k/qatar
Russia / Moscow Off: (0074-95)7395636 7 Koroviy Val
Street, Entrance
~ 61 ~
Mr. Nasir Hamid / No. 3, Office 75

Minister (Trade & Moscow,
Investment) 119049, Russian
Federation,
Moscow.
Fax: (0074-95)7395625 Email: mti.moscow@co
mmerce.gov.pk,
tradewingep@g
mail.com,
mintrademos@t
dap.gov.pk
Cell: (00796)84776400
k/russia
Sayed A. Waheed Off: (00966- Consulate
Shah / Trade & 12)6691054 General of
Investment Pakistan
Counsellor (Commercial
Section),
Building No.58-
60, Ibrahim Al-
Tassan Street
17-N, 7E,
Saudi Arabia / Jeddah Mushrifa
District/3
(ONEIKISH), P.O.
Box 182, Jeddah
21411, Saudi
Arabia.
Fax: (00966)12669056 Email: tic.jeddah@com
1 merce.gov.pk,
pakcom.jdh@tda
p.gov.pk
Cell:
k/jeddah
Mr. Azhar Ali Off: (00966- Embassy of
Dahar / Minister 11)4830809 Pakistan
(Trade & (Commercial
Investment) Section),
Saudi Arabia / Riyadh
Diplomatic
Quarters, P.O.
Box 94007,
Riyadh 11693,
KSA.
Fax: (00966- Email: mti.riyadh@com
~ 62 ~
pakcom.rdh@td
ap.gov.pk,
ahsahoo@gmail.
com
Cell: (00966)53
9350502
Res: (00966- URL: www.pakembass
11)2970464 yksa.com
Ms. Asmma Kamal Off: (0094- The High
/ Trade & 11)2055681-2 Commission of
Investment Pakistan in Sri
Attache Lanka, No.
42&44, Bullers
Sri Lanka / Colombo
Lane, Colombo 7
Fax: (0094-11)2055697 Email: tia.colombo@co
mmerce.gov.pk,
comsec.colombo
@gmail.com
Cell: (0094-76)9060376
Res: URL: www.pakistanhc
.lk
Ms. Humaira Israr Off: (0027- Trade Mission of
/ Trade & 11)6465674, Pakistan, 90-
Investment (0027-11)6465676 Virginia Avenue,
Attache Parkmore 2196,
Johannesburg,
South Africa, P.O.
South Africa / Box 653417,
Johannesburg Benmore 2010.
Fax: (0027-11)6468674 Email: tia.johannesburg
@commerce.gov.
pk,
paktrade@telko
msa.net
Cell: (0027-
07)37393522
k/southafrica
Mr. Imran Razzak Off: (0082-2)7975015, Embassy of
/ Trade & (0082- Pakistan(Comme
Investment 2)07968252, rcial Section), 39
South Korea / Seoul
Counsellor (0082-2)07960312 Jangmun-Ro, 9
GA-Gil, Yongsan-
gu, Seoul
(04392),
Republic of
Korea
~ 63 ~
Fax: (0082-2)7961141 Email: tic.seoul@comm

erce.gov.pk,
cc@pkembassy.o
r.kr
Cell: (0082-10)7726-
4143
Res: URL: www.pkembass
y.or.kr
Mr. Muhammad Off: (00221)33824613 Embassy of
Shoaib Anwar / 5 Pakistan, Dakar,
Trade & Senegal, Fann
Investment Mermoze Rue 11
Attache x 6, Villa No. 2.
Senegal / Dakar
Fax: (00221)33824613 Email: tia.dakar@comm
6 erce.gov.pk,
parepdakar@mo
fa.gov.pk
Cell: (00221)777 404
995
Res: URL: mofa.gov.pk/dak
ar-senegal/
Mr. Ahmad Affan / Off: (0034-91)3504943 Embassy of
Trade & Pakistan
Investment (Commercial
Counsellor Section), Calle
Pedro de
Valdivia No. 16,
Spain / Madrid PIO XII,
11,28006
Madrid, Spain
Fax: (0034-91)3504946 Email: tic.madrid@com
merce.gov.pk, pa
kcom.esp@tdap.
gov.pk
Cell: (0034)677169984
Res: (0034)91041053 URL: www.embajada-
pakistan.org
Mr. Shahid Ali Off: (00249-183) House No. 108,
Abbasi / Trade & 265599, (00249- Block-1/ E, Doha
Investment 183) 262199 Street, Al-
Sudan / Khartoum Attache Manshiya
(Behind Qatar
Embassy), East
Khartoum,
Sudan
Fax: (00249-183) Email: tic.khartoum@c
273777 ommerce.gov.pk,
~ 64 ~
embkhartoum@l
ive.com
Cell:
Res: URL: mofa.gov.pk/kha
rtoum-sudan/
Mr. Ghulam Off: (0046)8203300 Embassy of
Mustafa / Trade & (press 3 for CS) Pakistan,
Counsellor Section,
Karlavanden 65,
Sweden / Stockholm SE 11449,
Stockholm,
Sweden
Fax: (0046)8249233 Email: tic.stockholm@c
ommerce.gov.pk
Cell: (0046)076562116
9
mbassy.se
Dr. M .Mujtaba Off: (0041- Permanent
Piracha/ 22)7487012, Mission of
Ambassador/PR (0041-22)7487011 Pakistan to the
to WTO WTO, 37-39, Rue
de Vermont, 3rd
Floor, Case, PO
box NO 133,
Switzerland / Geneva 1211 Geneva 20
CIC
Fax: (0041-22)7487029 Email: ambassador.gen
eva@commerce.
gov.pk,
info@wto-
pakistan.org
Cell: (0041) 77 974
4765
Res: URL: www.wto-
pakistan.org
Mr. Majid Mohsin Off: (0041- Permanent
/ Trade & 22)7487010, Mission of
Investment (0041-22)7487020 Pakistan to the
Switzerland / Geneva Counsellor WTO, 37-39, Rue
de Vermont, 3rd
Floor, Case 1211,
Geneva 20 CIC,
Switzerland
Fax: (0041-22)7487029 Email: tic.geneva@com
merce.gov.pk
~ 65 ~
Cell: (0041)79 359

1620
Res: URL: www.wto-
pakistan.org
Dr. Muhammad Off: (0041-22)7487019 Permanent
Irfan / Trade & Mission of
Investment Pakistan to the
Counsellor WTO, 37-39, Rue
de Vermont, 3rd
Floor, Case, PO
box NO 133,
Switzerland / Geneva 1211 Geneva 20
CIC
Fax: (0041-22)7487029 Email: tic2.geneva@co
mmerce.gov.pk,
irfan.muhamma
d@wto-
pakistan.org
Cell: (0041-
78)6255550
Res: URL: www.wto-
pakistan.org
Mr. Rashid Imtiaz Off: (00992- Azizbekova
/ Trade & 37)2276255, Street, House 20
Investment (00992- “A”, Dushanbe,
Attache 37)2230177 Tajikistan
Tajikistan / Dushanbe
Fax: (00992- Email: tia.dushanbe@c
37)2510016, ommerce.gov.pk,
(00992- parepdushanbe
37)2211729 @mofa.gov.pk,
Cell: (00992-
93)8770125
k/tajikistan/
Mr. M. Farrukh Off: (0066)22552330, Embassy of
Sharif / Trade & (0066)22530288, Pakistan(Comme
Investment (0066)22530289 rcial Section), 31
Counsellor (Ext.211, 214, 216) SOI Nana Nua,
(3), Sukhumvit
Thailand / Bangkok
Road,Bangkok
10110.
Fax: (0066)22535325 Email: tic.bangkok@co
mmerce.gov.pk,
commercialsecti
onbkk@gmail.co
m
Cell: (0066)62 9495909
~ 66 ~

k/thailand
Mr. Bilal Khan Off: (0090- Consulate
Pasha / Consul 212)3245827 General of
General (Trade & Pakistan,
Investment) Gullusokak No.
20, 3. Levent,
Istanbul, Turkey
Fax: (0090- Email: cg.istanbul@com
212)3245170 merce.gov.pk, co
nsulgeneral@pa
kconsulateistanb
ul.com (Official
e-mail of Consul
General)
Turkey / Istanbul info@pakconsul
ateistanbul.com
(for general
information and
queries)
trade@pakconsu
lateistanbul.com
(for Trade
Inquiries)
parepistanbul@
mofa.gov.pk (for
Consular
Services)
Cell: (0090-
552)9522223
21)23510415 k/istanbul
Dr. Adeem Khan / Off: (00971- Consulate
Trade & 4)3972425, General of
Investment (00971-4)3973600 Pakistan, PO Box
Counsellor No. 340, Khalid
Bin Waleed
UAE / Dubai Road, Al
Hamaria
Diplomatic
Enclave (Trade
Division), Dubai,
UAE
Fax: (00971-4)3976599 Email: tic.dubai@comm
erce.gov.pk,
pakdubiz@gmail
.com,
~ 67 ~
paktrade@eim.a
e
Cell:
4)3357785 k/dubai
Mr. Shafiq A. Off: (0044- High
Shahzad / Trade 20)76649215 Commission for
& Investment Pakistan
Counsellor (Economic &
Trade Wing), 34-
36 Lowndes
Square, London
SWIX 9 JN.
UK / London Fax: (0044- Email: s.shahzad@phcl
74)59850906 ondon.org,
tic.london@com
merce.gov.pk,
commercialcoun
sellor@phclondo
n.org,
shafiqshahzad@
gmail.com
Cell:
Res: URL: www.phclondon.
org
Mr. Muhammad Off: (0044- Economic &
Akhtar / Trade & 161)2255885, Trade Division
Investment (0044- (N-Eng, N-Ire,
Attache 161)2243484 Scotland),
Consulate
General of
Pakistan,
Pakistan House,
UK / Manchester
139-Dickenson
Road, Rushlome,
Manchester M14
5HZ
Fax: (0044- Email: tia.manchester@
161)2255894 commerce.gov.p
k
Cell:
Res: URL: www.pakistanco
nsulatebradford.
com/manchester
USA / Houston Ms. Shaista Off: (001- Consulate
Bunyad / Trade & 281)8905532, General of
(001-281)8944014 Pakistan,
~ 68 ~
Attache Section, 11850
Jones Road,
Houston TX-
77070, Houston,
USA
Fax: (001-281)8944027 Email: tia.houston@co
mmerce.gov.pk,
pakcom.hus@td
ap.gov.pk
Cell: (001-832)8731007
Res: (001-713)8427134 URL: www.pakistanco
nsulatehouston.
org
Mr. Atif Aziz / Off: (001- Consulate
Trade & 310)4702368, General of
Investment (001-310)4415114 Pakistan,(Trade
Counsellor (Ext: 1030) Division)10700
Santa Monica
Blvd. # 211, Los
Angeles, CA
90025
Fax: (001-310)4419256 Email: atif.aziz@comme
USA / Los Angeles
rce.gov.pk,tic.los
angeles@comme
rce.gov.pk,c.losa
ngeles@commer
ce.gov.pk,
pakcom.loa@tda
p.gov.pk,
pakcom.la@tdap
.gov.pk
Cell:
Res: (001- URL: www.pakconsul
408)7250719 atela.org
Mr. Talat Off: (001-212)8793117 Consulate
Mahmood / Trade General of
& Investment Pakistan,(Comm
Counsellor ercial Division),
USA / New York 12 East, 65th
Street,New York
NY 10065
Fax: (001-212)5176987 Email: tic.newyork@co
mmerce.gov.pk,
pakustrade@yah
oo.com
Cell: (001-646)4968398
~ 69 ~
Res: (001-914)7250152 URL: www.pakistanco

nsulateny.org
Mr. Azmat Off: (001-202)2436500 Embassy of
Mahmud / Pakistan, 3517
Minister (Trade & International
Investment) Court, NW
Washington DC
USA / Washington DC 20008
Fax: (001-202)6861534 Email: ministertrade@e
mbassyofpakista
nusa.org, azmat.
khan@commerc
e.gov.pk
Cell:
Res: URL: www.embassyof
pakistanusa.org
Mr. Ali Qayyum Off: (008-44)37262254 Embassy of
Raja / Trade & Pakistan, Villa
Investment 44/2 Van Bao
Attache Street, Van Phuc
Diplomatic
Vietnam / Hanoi
Compound, Ba
Dinh, Hanoi,
Vietnam
Fax: (008-44)37262253 Email: tia.hanoi@comm
erce.gov.pk,
cspakhanoi@gm
ail.com
Cell: (0084-98)9594658
k/vietnam
~ 70 ~
Important Links
1. Board of Investment https://invest.gov.pk/home
2. Federal Board of Revenue https://www.fbr.gov.pk/
3. Ministry of Commerce http://www.commerce.gov.pk/
4. Ministry of Finance http://www.finance.gov.pk/
5. Pakistan Official Visa Portal https://visa.nadra.gov.pk/
6. State bank of Pakistan https://www.sbp.org.pk/
7. Securities and Exchange Commission of Pakistan https://eservices.secp.gov.pk/eServices/
8. Trade Development Authority of Pakistan https://tdap.gov.pk/
~ 71 ~
https://www.state.gov/reports/2020-investment-climate-statements/pakistan/
~ 72 ~

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TRADE DEVELOPMENT AUTHORITY OF PAKISTAN

Table 1: City hours ahead or behind Pakistan ............................................................................................................. 2

Figure 1: Pakistan at a Glance............................................................................................................................................. 4

ADB Asian Development Bank

Geography and Connectivity Dhaka(Bangladesh) +1

City (Country) Time Diff. Language

Policy Rate the country for an expanding retail market

Figure 1: Pakistan at a Glance

Major Exports Major Imports

8 Labour Force Survey 2017-18

of Islamic Countries(OIC), Economic South Asia. Landlocked countries like

10Became member on 9 June 2017

Major Economic Indicators Figure 3: Economic indicator for the period

Source: SBP, PBS

12 Source: International Monetary Fund, SBP (annual report 2019-20)

Foreign Direct Investments’ Statistics Switzerland 21.2 61.8 7.3

FDI trend for last 10 years (USD Millions)

Figure 4: Priority sectors for FDI

Food Processing Logistics Textile Automobiles IT & ITes

Housing & Oil and Gas Communication Finance

public safety like arms and ammunitions; high

3. Flexible financing requirements contract) and after exhaustion of local

Table 5 : Highlights of the Investment incentives in Pakistan

15 Foreign Exchange regulations of SBP and Investment policy 2013

Table 6: List of countries having Bilateral investment treaties with Pakistan

18 Property, Plant and Equipment

section: doing business in Pakistan

managerial personnel are allowed for multiple

Table 7: Enterprise/activity specific tax incentives

Type of Enterprise/Activity Tax Exemption/reductions

Low-Cost housing projects 50% exempt (contingent)

Projects under NAPHDA24 and Ehsaas25 90% exempt

24 Naya Pakistan Housing and Development Authority

to promote investment and industrialization 7. Duty-free vehicles allowed under certain

notified by the Board of Approval.

Incentives for SEZ includes

•One-Time exemption of all custom duties and taxes on Plant and

•One-time custom duties exemption on plant and machinery

•Same incentives as provided for developers as per the Finance

•One- Window facilities by BOI

Approved /Notified SEZs

Khairpur SEZ Sindh Public Agro Food Processing, light

Chemical Industries, Plastic,

& Management Industry, Pharmaceuticals, Seed

Incentives under Finance Bill 202030

Holding period for taxation of capital construction projects in the form of

 Local Government Services; processing plant, a mango pulp factory and an

Pakistan’s Trade Performance trade of Pakistan was US $ 77.6 billion in 2019.

Table 8: Yearly Trade overview of Pakistan

Indicator FY15 FY16 FY 17 FY 18 FY 19 FY 20

Figure 5: Trends in Pakistan's Trade Year-wise

Trends in Pakistan's trade (2015-2020)

Export (B US$) Import (B US$) Balance (B US$)

Export Profile Import Profile

United States China UK Afghanistan Germany

China UAE Saudi Arabia USA Indonesia

32 Export Policy 2020 https://drive.google.com/drive/u/1/folders/1tDfDcXMNg4Rt6fRnyRcwALjcs-oehLXG

33 Import Policy 2020 https://drive.google.com/drive/u/1/folders/1tDfDcXMNg4Rt6fRnyRcwALjcs-oehLXG